Norsk Hydro, the Norwegian oil and energy, light metals and plant nutrition group, will build an aluminium remelt plant with an annual capacity of 60,000 tonnes in Azuqueca near Madrid, Spain. Constructions will start this fall, and the plant will be in full operation in November 2001.
The new remelting facility will produce extrusion ingot using aluminium scrap, serving customers and offering conversion service to Hydro’s fast growing market for extrusion ingots in Spain and Portugal. The plant will be a part of Hydro’s network of casthouses and remelt plants, offering scrap conversion services to extrusion ingot customers in Europe. Next year Hydro will in addition have similar remelt plants in France, Germany, Luxembourg and the United Kingdom. End of next year, when the Iberian plant is in full operation, this network will have a total casting capacity of close to 300,000 tonnes of extrusion ingots per year.
The plant will utilise an existing structure in Azuqueca, and will be based on Hydro’s extensive casthouse technology and operational experience. Hydro’s remelt concept emphasises high productivity, combined with a high quality product, taking into account environmental and safety considerations. Total investments will be approximately NOK 200 million, (EUR 24,7 million). The new plant will employ about 40 people.
Hydro Aluminium Metal Product is market leader for extrusion ingots in Europe, supplying 780,000 tonnes in 1999, and expects a steady market growth and increase in market share in the years ahead. Volumes supplied by scrap remelters will grow in relative importance to support the projected growth.
Hydro announced earlier this summer that it would acquire Deeside Aluminium, a British extrusion ingot casting plant using aluminium scrap. This take-over is still awaiting approval of the Office of Fair Trade in the UK.
Hydro is also building a new remelt facility in Kentucky, USA, and at the end of this year Hydro will have approximately 175,000 tonnes of extrusion ingot casting capacity centrally located in the USA.
Norsk Hydro has for several years been involved in the Spanish and Portuguese aluminium industry supplying aluminium extrusions and building systems. With Hydro Aluminio La Roca Hydro operates an extrusion plant in the Barcelona region and with Hydro Sistemas de Arquitectura a building systems company in Madrid. In Portugal Hydro is market leader for aluminium extrusions through its extrusion plant Hydro Aluminio Portalex and supplies its building systems brands through Hydro Manuel Ferreira. Hydro is also a long standing supplier of fertilisers and industrial chemicals in Spain through Hydro Agri Espana and Hydro C.G. Liquidos.