Hydro aims to invest in a recycling plant for extrusion ingot in the US – a key step to double recycling of post-consumer aluminium by 2025.
Hydro Aluminium Metal has signed a Letter of Intent (LoI) to acquire a property in Cassopolis, Michigan in the US, with the aim to invest in a state-of-the-art aluminium recycling plant producing aluminium extrusion ingot for use in critical automotive applications as well as other transport and building systems.
The LoI between Hydro and landowner Midwest Energy and Communications (MEC) is based on Hydro’s intention to build a facility in Cassopolis producing 120,000 tpy from 2023 with around 70 direct employees. The total project investment is currently estimated to be around USD120m, depending on final facility design, market conditions and macroeconomic development.
Investment in recycling plant helps reduce carbon footprint
The Cassopolis greenfield development will also mark the first large-scale production of Hydro Circal extrusion ingot in North America. Circal extrusion ingot contains at least 75% post-consumer scrap certified by third party auditors DNV GL and has a market-leading CO2 footprint of only 2.3 kg CO2e/kg aluminium. The plant will produce these products using a technology pioneered by Hydro in its facilities at Clervaux, Luxembourg, and Azuqueca, Spain.
The facility will be the first manufacturing plant located at MEC’s Smart Park, a planned industrial and commercial development located in Cassopolis. Hydro will utilize direct rail service to bring supplies to the plant, helping to lower the overall carbon footprint of its operations, and plans to partner with MEC to source renewable electrical power for the facility.
Hydro aims to make a final investment decision on the planned greenfield development in Cassopolis before the end of the year.