“We are optimising portfolio and cutting costs in response to prolonged downstream market weakness,” Anders Vindegg, Norsk Hydro
Over the past few months, a series of announcements from Norsk Hydro may have given the impression of a brand in retreat. Hiring freezes, production curbs, and plant closures painted a picture of contraction. Yet, at the same time, the company was rolling out plans for fresh investments and capacity expansions. If the intent was restraint, why pursue growth? And what, ultimately, is Hydro’s long game?
To get a clearer understanding, we conversed with Anders Vindegg, Head of Media Relations at Norsk Hydro. With patience and clarity, he addressed our questions in detail. Here’s what we have learned:
AL Circle: Over the past six months, Norsk Hydro has implemented a temporary hiring freeze, announced plant closures, and introduced curbs in production. Could you walk us through the rationale behind these moves? Are they more of a response to current economic headwinds or part of a broader restructuring?
Anders Vindegg: The global business environment is increasingly shaped by geopolitical tensions, trade disruptions, and economic volatility. While Hydro has already introduced measures to mitigate these challenges, the company is now taking further action to ensure it remains well-positioned for the future. This is both a response to short-term macroeconomic turmoil and part of a longer-term strategic realignment. It is not about pulling the brakes but about making sure we move forward with the right structure and priorities across the company.
Part of this initiative is a hiring freeze for white collar roles, and in parallel, we are launching a structured review of the number of white-collar employees to ensure alignment with strategic priorities and operational efficiency. This review will help us assess the current and future needs, in line with Hydro’s priorities.
For Hydro Extrusions, firm measures are being implemented to optimise the portfolio and cut costs in response to the prolonged market weakness we have seen over time, especially in Europe and the US. This includes the closure of an anodising line in Luce, France and the closure of the extrusion plant Birtley in the UK.
AL Circle: In the wake of the hiring freeze, what internal communications or strategic HR plans have been set in motion to maintain workforce morale and confidence?
Anders Vindegg: We know that a hiring freeze may feel dramatic to our employees, but we aim to do this process with deep respect for all the people who make Hydro the company it is. We are committed to conducting this process with transparency and care, and ensuring that our employees are informed throughout this process, kept up to date on developments and that employee representatives are involved.
AL Circle: While curbs and closures usually signal consolidation or caution, Hydro has simultaneously expanded operations in Brazil and initiated investments in energy efficiency. How do you balance these seemingly opposite strategies?
Anders Vindegg: Our 2030 strategy focuses on growing the core of the integrated value chain. The initiatives taken to optimise our portfolio are done to make sure we move forward with the right structure and priorities and show Hydro’s commitment to long-term value creation.
While some restructuring initiatives have been carried out in our downstream operations in Europe over the last months, Hydro continues to invest in initiatives and technologies that support our decarbonisation goals, growth ambitions and long-term strategy throughout our business, from mine to metal.
AL Circle: Could you elaborate on how these developments, especially the closure of specific European extrusion plants, align with Hydro’s long-term roadmap?
Anders Vindegg: The downstream aluminium market continues to face headwinds, with weak demand and compressed recycling margins in both Europe and North America. As a response to that, firm measures are being implemented to optimise the portfolio and cut costs. While we have a strong belief in the extrusion market long-term, our best line of defence in a more challenging current market is to focus on what we can control. That’s why we’re accelerating our improvement efforts to strengthen our cost position and secure competitiveness, to ensure Hydro remains well-positioned for the future.
AL Circle: Hydro’s investments in low-carbon aluminium production are particularly notable. What are your short- and long-term expectations from these investments in terms of emissions reduction and commercial scalability?
Anders Vindegg: Hydro’s investments in low-carbon aluminium are central to our ambition of becoming a net-zero company by 2050. Going forward, we will continue to execute on our decarbonisation roadmap and contribute to a nature-positive and just transition, while shaping the market for greener aluminium.
A prime example is the fuel switch project at Hydro’s Alunorte alumina refinery in Brazil, where we have made the switch from heavy fuel oil to natural gas. At Alunorte, BRL 1.3 billion is invested to avoid around 700,000 tonnes of carbon emissions annually. The switch of fuel source at Alunorte is a significant step in Hydro’s decarbonisation journey and key to Hydro’s global goal to reduce its carbon emissions by 30 per cent by 2030.
We also aim to scale up our low-carbon offerings, such as Hydro REDUXA low-carbon aluminium and Hydro CIRCAL recycled aluminium, by expanding recycling capacity, continuing our technology development and innovation, and integrating more renewable energy across our global operations. We see that these products already meet growing demand from customers and sectors that are seeking verified, low-carbon materials.
AL Circle: Has the CBAM (Carbon Border Adjustment Mechanism) implementation influenced Hydro’s approach toward sustainable processing within Europe and across other trade jurisdictions?
Anders Vindegg: CBAM has been a catalyst for even deeper engagement with policymakers, partners and customers. Hydro supports CBAM as a tool to level the playing field between European producers and importers, prevent carbon leakage and incentivise decarbonisation abroad.
The company is actively involved in shaping its implementation. However, we believe that to achieve its goals, CBAM must reflect all the emissions and corresponding costs of making a product must be calculated on an equal basis to that faced by European industry when imported to the EU. Hydro has been an early and active voice in CBAM discussions, contributing data and expertise to help shape a policy that safeguards European industry while supporting the transition to a low-carbon future.
Hydro has actively voiced concerns about loopholes in the current CBAM framework, particularly the “scrap loophole,” which treats remelted aluminium scrap as having zero emissions, regardless of origin or process. EU producers already bear carbon costs through scrap prices, which closely follow those of primary aluminium, placing European recyclers at a disadvantage. Since scrap accounts for nearly half of global aluminium volumes, leaving this loophole open could allow up to 50 percent of aluminium imports to sidestep CBAM entirely, while EU recyclers face rising cost pressure. We have argued for adjustments to ensure all scrap-based products are included and treated with appropriate default emission values, with strict verification rules.
AL Circle: As global aluminium prices continue to experience pressure owing to geopolitical and energy market volatility, how does Hydro plan to safeguard margins and competitiveness?
Anders Vindegg: Hydro is taking firm measures to protect margins and maintain competitiveness in a volatile market. We are leveraging our integrated value chain – from bauxite and alumina to energy and recycling – which gives us flexibility and cost control across operations. We have seen over the last years that our renewable energy assets, particularly in Norway and Brazil, and long-term power contracts contribute to shield the company from fluctuating energy prices that have impacted many in the industry.
We are also accelerating operational efficiency through restructuring efforts, optimising the portfolio and cutting costs in response to the prolonged downstream market weakness. This work is ongoing, as previously announced, including the closure of the Birtley extrusion plant in the UK and an anodising line in Luce, France, as well as the curtailment of an additional 30,000 tonnes of recycling capacity in Puget, France.
AL Circle: Are there any new partnerships or offtake agreements Hydro is pursuing in light of decarbonisation goals and the broader demand for sustainable metal?
Anders Vindegg: At Hydro, we want to change the way we consume by pioneering the way we produce. But we cannot do this alone. Together with our partners and customers we are radically rethinking every step of the aluminium value chain, ensuring transparency and minimising harmful practices from mine to the end-product.
We continue to explore strategic partnerships and long-term offtake agreements that support both our decarbonisation goals and the growing market demand for sustainable aluminium in all parts of our value chain.
A recent example is our long-term offtake agreement with NKT, a leading European power cable solutions provider. This agreement secures the supply of low-carbon aluminium wire rod from Hydro’s new NOK 1.65 billion wire rod casthouse in Karmøy, Norway. The contract spans from 2026 to 2033 and covers an estimated 274,000 tonnes of aluminium, with options for additional volumes. The aluminium will be sourced from Hydro REDUXA 4.0, which has a carbon footprint of 4 kg CO2e per kilo or less – about a quarter of the global industry average.
This shows how Hydro is leveraging its integrated value chain and sustainability leadership to forge partnerships that are both commercially robust and environmentally responsible.
AL Circle: With evolving EU and US industrial policy frameworks focusing more on domestic manufacturing and clean energy, how is Hydro engaging with governments or policy stakeholders to ensure alignment and support?
Anders Vindegg: Hydro is actively engaging with policymakers across Europe and North America to ensure that industrial policies support a competitive and sustainable aluminium industry. Across our markets, we emphasise the need for a level playing field, reliable access to competitively priced renewable energy, and targeted support for technology developments in areas such as carbon capture and recycling.
At the same time, Hydro is working to align its decarbonisation roadmap with evolving policy frameworks, ensuring that its investments are underpinned by coherent and forward-looking regulations.
AL Circle: What would you consider Hydro’s biggest challenge in the next two years, and conversely, its most promising opportunity?
Anders Vindegg: Hydro’s biggest challenge over the next two years is navigating the increasingly complex landscape while maintaining profitability and stakeholder trust. We see a global business environment that is increasingly shaped by geopolitical tensions, trade disruptions and economic volatility. To position the company to navigate uncertainty and continue delivering long-term value, will be a challenge for Hydro and the industry as a whole in the years to come.
At the same time, there are lots of opportunities in the company’s ability to lead the green aluminium transition through strategic investments and development in low-carbon aluminium, renewable energy, and circular economy solutions. Our 2030 roadmap outlines ambitious targets for decarbonisation, recycling, and renewable energy generation, and our integrated value chain, renewable energy portfolio, and commitment to innovation give us a unique edge.
