Hydro plans to build an aluminium recycling plant in Michigan for the production of extrusion ingot

The Norwegian aluminium company, Hydro’s Aluminium Metal unit has inked a letter of intent (LOI) to acquire land to develop a “state-of-the-art aluminium recycling plant” in Cassopolis, Michigan, that will produce aluminium extrusion ingot.

The European company said: “The planned facility in Cassopolis, which is about 45 miles southwest of Kalamazoo, Michigan, represents a key step in Hydro’s ambition of doubling its recycling of post-consumer aluminium by 2025. The aluminium produced will be used in automotive and other transportation applications and for building products.”

The LOI between Hydro Aluminium Metal and landowner Midwest Energy and Communications is based on Hydro’s proposal to construct a facility in Cassopolis so that starting the year 2023 it can produce 120,000 tonnes per year.

Hydro evaluated that the budget will be around $120 million to build the facility, which will employ approximately 70 people.

According to Hydro: “The Cassopolis Greenfield project will mark as the first large-scale production of Hydro CIRCAL extrusion ingot in North America.”

Hydro’s unique CIRCAL extrusion ingot contains at least 75% postconsumer scrap certified by third-party auditors and has a ‘market-leading low-carbon footprint.

The Michigan plant will use technology pioneered by Hydro at its facilities in Luxembourg and Spain. As per Hydro, the project will have access to direct rail service and the company will attempt to source renewable electrical power for the facility.

Hydro stated that it aims to make a final investment decision on the planned Greenfield development in Michigan before the end of 2021.