Aluminium and renewable energy company, Hydro, has recently announced a substantial investment of USD 85 million in a new casting line at their aluminium recycling plant in Henderson, Kentucky. The primary objective of this bold decision is to enhance their presence in the U.S. automotive market by providing high-quality automotive components that are in demand.
The investment was disclosed by Hydro’s President and CEO, Eivind Kallevik, during a meeting with the Governor of Kentucky. It has received support from the Kentucky Economic Development Finance Authority (KEDFA) in the form of tax incentives and is anticipated to generate 31 new job opportunities in the city of Henderson. Notably, the new casting line will increase capacity by an impressive 28,000 tonnes (62 million pounds) of aluminium, further solidifying Hydro Henderson’s position as a leading producer of low-carbon aluminium for the North American automotive industry.
Kallevik stated, “This investment is another step towards Hydro’s commitment to revolutionize aluminium production. Our emphasis on recycling end-of-life scrap not only reduces emissions, but also strengthens supply security, allowing us to deliver innovative products to our U.S. customers,” underscoring the company’s focus on innovation and sustainability.
Furthermore, Hydro has previously announced a separate USD 15 million investment in new equipment at the Henderson recycling plant, which is nearing completion. These initiatives will enable the production of larger volumes of advanced alloys using recycled, post-consumer scrap, leading to a reduced carbon footprint.
The introduction of HyForge technology at Hydro Henderson follows successful implementation at the Hydro Husnes primary plant in Norway and the Hydro Rackwitz recycling plant in Germany, establishing Hydro as a global leader in advanced aluminium production technology.
Kallevik remarked, “Hydro Henderson has been at the forefront of producing recycling-based automotive products for nearly twenty years. By introducing HyForge technology, we aim to provide Hydro and our partners with a sustainable advantage, made in America,” highlighting the company’s dedication to sustainability and collaborative efforts with partners in the automotive industry.
The new HyForge casthouse is projected to begin operations by 2026, with the aim of meeting the automotive market’s requirement for smaller diameter, high-quality billets that can be forged directly into automotive components. This streamlined process will lead to increased cost efficiency and higher product quality in comparison to traditional methods, without compromising safety.
Kallevik emphasized, “Embracing the new technology and expanded capacity is in line with our customers’ specific needs within the automotive industry to create lightweight car parts, thereby reducing emissions from driving. Additionally, this expansion significantly increases the use of end-of-life aluminium, reducing emissions from production, ensuring market-leading sustainability performance for Hydro and our customers,” highlighting the environmental benefits of the investment.
By utilizing a large proportion of end-of-life scrap, Hydro Henderson aims to deliver HyForge billets with a low CO2 footprint, contributing to the company’s objective of achieving net-zero carbon emissions by 2050.
In conclusion, Hydro’s investment in new technology marks a significant advancement for the company, as well as for the future of sustainable and environmentally friendly aluminium production. This strategic move sets a high standard for the industry, underscoring Hydro’s commitment to innovation and sustainability.