Hydro started up the operation of its new aluminum recycling plant in Szekesfehervar, Hungary. The plant will process recycling scrap into advanced alloys for extrusions, mainly serving the automotive market. In addition, it will provide automotive customers with a closed-loop recycling system, taking back both both production scrap and post-consumer scrap to be made into new products.
“Our most ambitious customers in key industries like the automotive industry are pushing demand for low-carbon and recycled aluminum upwards,” said Eivind Kallevik, president and CEO of Hydro. “To serve this growing market and strengthen Hydro’s position as the leading provider of low-carbon and recycled aluminum solutions in Europe, we are set to grow our capacity for aluminum recycling towards 2030. This plant will strengthen Hydro’s capacity to provide our customers with advanced components in recycled aluminum.”
The new recycling unit is located adjacent to the existing extrusion plant in Szekesfehervar, which is one of the most advanced operations of its kind in Europe. The site has six presses, surface coating capabilities, and 300 machines for fabrication. The extrusion plant produces advanced aluminum components for the automotive and other industries.
With the completion of the recycling unit, the plant will be able to recycle production scrap without having to ship it to another recycler. The recycling plant will initially process 15,000 tonnes of post-consumer scrap annually, increasing over the years to come in line with the growing customer demand for recycled, post-consumer aluminum. It currently has an annual capacity to produce 90,000 tonnes of aluminum billet.
“Our customers are not only asking for recycled and low-carbon aluminum,”noted Paul Warton, executive vice president of Hydro Extrusions. “They also need us to recycle their process scrap, so we can create closed loops. With our new and modern recycling facility in Hungary, we are now able to offer that.”
New Extrusion Press Underway
The Szekesfehervar extrusion plant is also in the process of building a new high strength extrusion press for automotive products. The NOK 360 million (€35.7 million) investment includes the installation of a 12-inch press line in an existing building, featuring the most advanced and efficient technologies on the market to minimize the carbon footprint of the process. The line will mainly use billet from the new recycling plant.
The automotive components Hydro manufactures in Szekesfehervar include crash management systems, such as bumper beams and crash boxes, as well as structural parts of the car body and battery housings. The new investment will significantly increase its capacity for further growth in supplying new generation battery housings and e-mobility projects.
The new press will be part of Hydro’s automotive network, which includes the automotive press investment in Denmark announced in 2022. “This network of specialized plants offers a unique selling point towards car manufacturers with large volumes, allowing supply from several locations,” said Bruno D’hondt, senior vice president in Hydro’s Extrusion Europe business unit. “Together, with the new press in Tønder, Denmark and our existing P5 press in Hungary, this new investment will give Hydro unmatched capabilities to supply the automotive market anywhere in Europe with the best available technology and a balanced footprint.”
The new press line is expected to start production in 2025.