Hydro Extrusions held a groundbreaking ceremony for the construction of its new aluminum recycling plant in Szekesfehervar, Hungary. The €88 million project will enable closed-loop recycling of both production and post-consumer aluminum scrap, which will be used to produce advanced alloys for extrusions used in the premium automotive segment.
“Recycled aluminum is becoming more and more important within the extrusion industry,” said Hilde Merete Aasheim, Hydro’s president and CEO. “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 aluminum to a market where demand for greener aluminum is accelerating.”
The recycling plant will be built alongside Hydro’s aluminum extrusion plant in Hungary. The extrusion plant mainly serves automotive customers. Adding the ability to offer closed-loop recycling will support carmakers and customers from other industries to reduce the carbon footprint of their products.
In a closed loop, production scrap is collected and sent directly back to the recycling plant from manufacturers. By situating the recycling operation alongside the extrusion plant, one transportation leg will be removed, the supply chain will be optimized, and waste will be limited to a minimum. The recycled aluminum will also be able to go right back into the production of advanced car components.
“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,” said Paul Warton, executive vice president for Hydro Extrusions. “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.”
The new recycling facility will have an annual capacity of 90,000 tonnes and will create about 80 new jobs. It is expected to start production in the first quarter of 2024.
“Our customers and their end customers want products that demand less energy to produce, and that contain more recycled metal,” noted Frank Iepema, managing director of Hydro Aluminium Extrusion. “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 aluminum locally: Hydro RESTORE.”