The Norwegian aluminium group Hydro is expanding its new recycling business in Poland. After completing the acquisition of the Polish recycling company Alumetal this summer, Hydro now plans to invest nearly NOK200m (ca. €17.5m) in the modernisation of Alumetal's Kęty plant in southern Poland. Hydro plans to increase the plant's capacity by about 30,000 tonnes of cast alloys and strengthen Alumetal's position in the automotive market, according to a Hydro statement released on Friday.
At the end of June, Hydro had taken over the then listed company Alumetal S.A. for about PLZ1.27bn (ca.€285m). With a current production capacity of around 275,000 tonnes, spread over three plants in Poland and one in Hungary, Alumetal is Europe's second largest producer of aluminium casting alloys, according to Hydro. Together, Hydro and Alumetal want to become the leading integrated aluminium recycler in Europe.
"In Alumetal we see a good fit with Hydro’s ambitious strategy for growth in recycling. This investment confirms our intention to develop and grow the business further," said Eivind Kallevik, executive vice president at Hydro Aluminium Metal.
The scope of Hydro's first investment in Alumetal since assuming ownership comprises the replacement of the existing furnaces and ingot casting equipment at Kęty. The new and more modernised equipment will make it possible to increase capacity and improve safety and operational efficiency, Hydro said.
The modernised recycling facility is expected to be operational during the first half of 2025, said the Norwegian group.