Hydro marks the groundbreaking ceremony for its upcoming aluminium recycling facility in Hungary

The importance of recycled aluminium in the extrusion sector is becoming more significant. On Thursday, September 1, Hydro marked the groundbreaking ceremony for the construction of its upcoming aluminium recycling plant in Szekesfehervar, Hungary. In a market where demand for greener aluminium is increasing, this new plant will solidify Hydro's position as a global leader and enhance its commitment to a greener future.

The aluminium factory, which will be constructed next to Hydro's aluminium extrusion facility in Szekesfehervar, will make sophisticated alloys for extrusions utilised in the luxury car market. The new plant is anticipated to begin production in Q1 2024 and will have an annual capacity of 90,000 tonnes. About 80 new jobs will be created due to the investment, estimated to cost roughly 88 million euros.

The facility will also allow consumers to close the loop by accepting both production and post-consumer scrap, recycled into new goods, using just 5 per cent of the energy initially required to generate the metal.

“Recycled aluminium is becoming more and more important within the extrusion industry. This new facility is an important investment for a greener future and will strengthen Hydro’s position as a leading supplier of high quality, low-carbon aluminium to a market where demand for greener aluminum is accelerating,” said Hilde Merete Aasheim, President  & CEO of Hydro.

Due to its capacity to provide "closed loops," the Hungarian extrusion facility, which primarily serves the automotive industry, assists automakers and clients from other sectors in lowering the carbon impact of their goods. Closed loop recycling preserves the properties of materials that can be constantly recycled while using less energy and resources and the same amount of material. Aluminium stands out in this regard.

“As automotive customers put more emphasis on greener solutions, we are taking this breakthrough step in Hungary to grow the market with advanced products and drive sustainability. We are increasing our recycling capacity in Central and Eastern Europe, ensuring reliable billet supply to our customers and creating possibilities of closing the loop by taking back and recycling production scrap and post-consumer scrap,” said Paul Warton, executive vice president responsible for Hydro Extrusions.

Producers collect and send manufacturing scrap straight back to the recycling facility in a closed loop. The supply chain is streamlined, waste is kept to a minimum, and one transit leg is reduced by placing the recycling facility next to the extrusion facility. The recovered aluminium is used again to create cutting-edge auto parts.

“Our customers and their end customers want products that demand less energy to produce, and that contain more recycled metal. By taking this next step in Hungary, with a state-of-the art remelt plant using the best technology available, we will be able to produce recycled aluminium locally: Hydro RESTORE,” stated managing director Frank Iepema of Hydro Aluminium Extrusion.

Various aluminium products called Hydro RESTORE are produced locally using a combination of recycled pre-and post-consumer waste and primary aluminium. Once the scrap is gathered, it will be melted down, cast into a fresh billet, and then returned as input material for use in new goods at the recycling factory.