Hydro, an aluminium and renewable energy company, is investing Nkr1.65bn ($156m) to build a new wire rod casthouse at its aluminium smelter in Karmøy, Norway.
The facility is designed to produce aluminium wire for power cables for the European market and support the region’s critical energy infrastructure.
Go deeper with GlobalData
The casthouse will have a production capacity of 110,000 tonnes per annum (tpa) and is expected to begin production in 2028. A final decision on the project is expected in the fourth quarter of 2025.
The new facility will allow Hydro to capitalise on the growing market for aluminium wire and is part of the company’s annual investment plans, which total around Nkr15bn.
Hydro president and CEO Eivind Kallevik said: “This investment will expand the capacity of wire rod to supply our customers with low-carbon solutions needed to develop and expand Europe’s most critical infrastructure. This demonstrates that a productive aluminium industry has good growth opportunities in Norway.”
Aluminium has been categorised by the EU as a critical material and is favoured in the energy transition for its light weight, durability and recyclability. Norway is a major producer, contributing 40% of Europe’s aluminium output.
Despite a recent dip in global demand due to a turbulent landscape and decreased industrial activity, Hydro has seen an uptick in sales of low-carbon aluminium.
Kallevik added: “We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials. Despite generally weaker demand in 2024, Hydro sold more low-carbon and recycled aluminium last year than in both 2023 and our record year in 2022.”
The casthouse is set to enhance Hydro’s product flexibility in a fluctuating market, particularly benefitting sectors such as automotive and building systems that are currently facing challenges.
Hydro Karmøy produces approximately 270,000 tonnes (t) of primary aluminium and 220,000t of casthouse products each year.
In January 2025, Hydro collaborated with Rio Tinto to assess carbon capture technologies in the aluminium electrolysis process.
