Hydro is reportedly purchasing land in Torija, Spain, to construct a state-of-the-art aluminium recycling plant with an annual capacity of 12,000 tonnes. As per the report, Hydro has already signed an agreement for land purchase with a subsidiary of the Pulsar Properties Group.
The facility will produce Hydro CIRCAL, an in-house brand of high-quality recycled aluminium ingot made with 75 per cent post-consumer scrap, which accounts for only 2.3 kg of CO2e/kg aluminium. Thus, it will boost Hydro's low-carbon aluminium production ability and European scrap storage.
The new plant will hire about 65 direct employees. However, Hydro aims to make a final investment decision by the end of 2023, as the project is estimated to cost around EUR 130-140 million, depending on the final design, market conditions and macroeconomic development.
Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal, said: "The European and Iberian market for aluminium continues to grow. This investment will be an important step towards Hydro's ambition to recycle more post-consumer aluminium, strengthening our position to capture value from growing demand for greener and circular aluminium."
The demand for aluminium by the end of 2030 in Hydro's main markets is estimated to grow at around 3 per cent per year, while low-carbon aluminium demand is expected to outrun the rest of the market. But every year, about 1 million tonnes of aluminium scrap leaves Europe.
Kallevik added, "Thanks to our state-of-the-art technology and competent workforce, we aim to dig deeper into the European scrap pile. This investment will enable us to bring more low value scrap types back to life as value added products for electrical transport solutions, building systems and renewable energy applications that will drive Europe's green transition."
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