Hydro strikes sourcing deal with Sims

Norway-based aluminum producer Norsk Hydro ASA has entered a multiyear agreement with Sims Alumisource to purchase processed aluminum scrap for melting at its North American extrusion plants.

Sims purchased Alumisource, in 2021. The acquired firm provides raw material inputs to the aluminum industry in the form of custom shredded and blended aluminum scrap. Sims Alumisource continues to operate from facilities in Monessen, Pennsylvania, and Richmond, Kentucky.

Hydro, which has been expanding its capacity in North America for the past several years, says it is the largest producer of aluminum billets in North America, with 12 recycled-content production facilities in the U.S. and Canada.

Hydro and Sims Alumisource say they have worked together to refine the processing of postconsumer aluminum scrap into furnace-ready charge material for extrusion billet casting.

Through the new agreement, over the course of the contract, the Hydro Extrusions business unit in North America will get access to roughly 36,000 metric tons of aluminum scrap prepared by Sims Alumisource, which is a subsidiary of Sims Metal and Australia-based Sims Ltd.

“Hydro is committed to reducing its environmental impact throughout the value chain, with a strong focus on producing aluminum products that have a high recycled content and lower carbon footprint,” says Charlie Straface, president of the Hydro Extrusions North America business unit.

“By sourcing additional high-quality postconsumer scrap for our recycling operations, we will help drive the circular economy and directly contribute to Hydro’s sustainability ambitions."

“Through this agreement, Sims Alumisource is able to support Hydro in their circular and emissions reductions ambitions while at the same time supporting the delivery of our own company purpose [to] create a world without waste to preserve our planet,” says Rob Thompson, global chief commercial officer of Sims Metal.

“It is also an exciting opportunity to continue expanding our presence in North America while demonstrating how Sims Alumisource can deliver innovative solutions that meet both customer quality and sustainability requirements.”

Hydro says the “state-of-the-art scrap processing techniques” of Sims Alumisource allow it to provide Hydro with a consistent supply of material that improves melt productivity and provides greater access to alternative scrap sources.