The Hydro Aluminum Metal business unit of Norway-based Norsk Hydro ASA has announced it made the investment decision for the construction of what it calls a new “state-of-the-art aluminum recycling plant” that will produce an estimated 120,000 metric tons of aluminum extrusion ingot per year in Cassopolis, Michigan—approximately 45 miles southwest of Kalamazoo.
The company signed a letter of intent in July to acquire the land in Cassopolis, calling the move “a key step in [Hydro’s] ambition of doubling its recycling of postconsumer aluminum by 2025.” The aluminum produced will be used in automotive and other transportation applications and for building products, according to Hydro.
“The Cassopolis greenfield development will mark the first large-scale production of Hydro Circal extrusion ingot in North American,” says Eivind Kallevik, executive vice president of Hydro Aluminum Metal. “We look forward to bringing this high-quality, low-carbon product to our most demanding customers.”
With a growing focus on sustainability, Hydro says a number of its North American customers have expressed interest in Hydro Circal extrusion ingot, which contains at least 75 percent postconsumer scrap certified by third-party auditors DNV GL. The company plans to use technologies developed at its recycling plants in Luxembourg and Spain.
Hydro will deliver initial quantities of Hydro Circal to U.S. customers from its plant in Commerce, Texas, before the end of 2021 in anticipation of the capacity at Cassopolis.
The expected investment currently is estimated to be around $140 million, depending on final facility design, market conditions and economic development. Hydro plans to use direct rail service to bring supplies to the plant to help lower the overall carbon footprint of its operations.
Investment is pending a final building decision, which is expected in the first half of 2022.
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