Hydro makes additional aluminum cuts

Citing reduced market demand for aluminum billets in Europe, Norway-based Norsk Hydro says it will “partially curtail” aluminum production at its Hydro Karmøy and Hydro Husnes facilities in Norway.

“The decision will correspond to an annual production capacity reduction of from 110,000 to 130,000 metric tons of primary aluminum, including production recently taken out for ordinary maintenance and not yet restarted,” the company says.

Both Norwegian locations produce ore-based primary aluminum, though the company had been experimenting with using more scrap at the Karmøy facility.

The Hydro primary aluminum cutbacks in Norway join one made earlier this year at the company’s majority-owned primary smelter in Slovakia. In Slovakia, the firm continues to produce recycled-content aluminum.

“The extraordinary situation in the European economy and energy market is causing market uncertainty and a decline in demand for our aluminum products,” says Eivind Kallevik, executive vice president at Hydro. “Even if 50 percent of Europe’s primary aluminum production capacity has been curtailed during the last year, [the] recent drop in demand is causing a buildup of stock, forcing us to take firm actions.”

Kallevik continues, “While the short-term market trend is falling and uncertainty prevails, underlying market trends longer term will remain positive due to the rising need for aluminum in support of the European green transition. We believe that with Norway’s strong industry framework conditions, including access to renewable energy, Hydro’s Norwegian aluminum smelters are well positioned to capture the growing market for low-carbon aluminum.”