Hydro announces to invest in a new a state-of-the art aluminium recycling plant at Cassopolis, Michigan

Hydro has announced its decision to invest in building a new state-of-the art aluminium recycling plant at Cassapolis, Michigan, which will produce 120,000 tonnes of aluminum extrusion ingot per year. Construction will expectedly start in early 2022, and the operations of the plant to commence in 2023, appointing about 70 direct employees.

“The Cassopolis greenfield development will mark the first large-scale production of Hydro CIRCAL® extrusion ingot in North America. We look forward to bringing this high-quality, low-carbon product to our most demanding customers,” said Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal.

The project is estimated to involve an investment of $140 million, depending on final facility design, market conditions, and macroeconomic development. Using technologies developed at Hydro recycling plants in Clervaux, Luxembourg, and Azuqueca, Hydro will be able to recycle up to 40,000 tonnes of post-consumer scrap at the new facility.

Hydro CIRCAL® extrusion ingot contains at least 75 per cent post-consumer scrap certified by third-party auditors DNV GL and has a market-leading CO2 footprint of only 2.3 kg CO2e/kg aluminum.

Hydro CIRCAL® extrusion ingot will be used for critical automotive applications and other transportation sectors, besides consumer applications and building systems. Hydro will initially deliver CIRCAL® extrusion ingot to US customers from its plant in Commerce, Texas, before the end of 2021.

“The Cassopolis project represents a key stepping-stone toward Hydro’s goal of doubling recycling of post-consumer scrap in its production processes and providing an EBITDA uplift of NOK 0.7-1.1 billion from the recycling operations by 2025,” said Kallevik.

The investment decision for the Cassopolis plant followed the finalisation of project design and several evaluations on potential customers and suppliers in the area.