Aluminium and renewable energy company Hydro is investing in building a new wire
rod casthouse at its aluminium smelter in Karmøy, Norway. The new facility will
supply aluminium for use in critical energy infrastructure in Europe and is
expected to start production in 2028.
"This investment will expand the capacity of wire rod to supply our customers
with low-carbon solutions needed to develop and expand Europe's most critical
infrastructure. This demonstrates that a productive aluminium industry has good
growth opportunities in Norway," says Eivind Kallevik, President and CEO of
Hydro.
The wire rod casthouse in Karmøy will have a capacity of 110,000 tonnes per
year. Completion of the casthouse is scheduled for the first quarter of 2028 and
is Hydro's largest investment in Norway in ten years.
The new casthouse will produce aluminium wire for power cables in Europe.
Aluminium is defined by the EU as a critical material. Norway currently accounts
for 40 percent of the aluminium produced in Europe.
"Europe's energy transition is about one thing, more renewable power production,
and the power produced must be transported over long distances. Aluminium is
crucial for transporting electricity to where it is needed. By expanding the
capacity to deliver low-carbon aluminium from Norway to the EU, we help ensure
that the infrastructure, the very backbone of the future energy system, supports
both Europe's security and climate policy goals," says Kallevik.
Increased demand for low-carbon aluminium
While a turbulent global landscape and lower industrial activity has reduced
aluminium demand over the past year, Hydro has sold more low-carbon aluminium in
recent years. In the energy transition, properties such as weight, durability
and recyclability give aluminium a competitive advantage. An aluminium conductor
with the same electrical conductivity as a copper conductor weighs approximately
50 percent less, or half the weight, of a copper conductor.
"We see in our own sales figures an increasing awareness in the market that
future renewable energy must be transported with renewable materials. Despite
generally weaker demand in 2024, Hydro sold more low-carbon and recycled
aluminium last year than in both 2023 and our record year in 2022," says
Kallevik.
The new casthouse will contribute to increased product flexibility in a volatile
aluminium market, where the markets for automotive and building systems are
particularly challenging. With a new wire rod casthouse, Hydro can produce more
aluminium wire for a rapidly growing market.
"Europe's transition from imported fossil energy to domestically produced
renewable power opens an exciting market when the infrastructure behind the
electrification wave is to be built. Our ambition is for Hydro to play a key
role as a stable, reliable supplier of the aluminium solutions Europe needs to
succeed," says Kallevik.
The project is pending final build decision which will be made in the fourth
quarter of 2025. The investment is included in Hydro's annual investment plans
of approximately NOK 15 billion.
Investor contact:
Elitsa Blessi
+47 91775472
Elitsa.Blessi@hydro.com
Media contact:
Anders Vindegg
+47 93864271
Anders.Vindegg@hydro.com