Hydro to Bolster European Energy Networks with New Wire Rod Casthouse in Karmøy

Hydro Karmøy is one of Europe’s largest primary aluminium plants with a total annual production of around 270 000 tonnes of primary aluminium and 220 000 tonnes of casthouse products.

(IN BRIEF) Hydro has unveiled plans to invest in a new wire rod casthouse at its Karmøy aluminium smelter in Norway, aiming to supply aluminium for Europe’s critical energy infrastructure. With a production capacity of 110,000 tonnes per year, the facility is scheduled to begin operations in early 2028 and represents Hydro’s largest investment in Norway in a decade. The project is part of Hydro Karmøy’s expansive production, which includes 270,000 tonnes of primary aluminium and 220,000 tonnes of casthouse products annually. The new casthouse will cater to the growing demand for low-carbon aluminium, particularly for power cables essential to Europe’s energy transition, thereby supporting the continent’s security and climate objectives. Despite a challenging global market, the demand for low-carbon and recycled aluminium has increased, a trend underlined by Hydro’s sales figures. The final build decision is expected by the fourth quarter of 2025, as the investment aligns with Hydro’s annual plan of NOK 15 billion. Additionally, Hydro Karmøy’s long history, innovative smelting technology, and R&D efforts position it as a cornerstone of Norway’s aluminium industry.

(PRESS RELEASE) OSLO, 21-Mar-2025 — /EuropaWire/ — Hydro, a leading player in aluminium and renewable energy, has announced an ambitious investment to construct a new wire rod casthouse at its Karmøy aluminium smelter in Norway. This cutting-edge facility is designed to produce aluminium tailored for critical energy infrastructure across Europe and is slated to commence production in the first quarter of 2028.

Hydro Karmøy stands as one of Europe’s largest primary aluminium production sites, boasting an annual output of approximately 270,000 tonnes of primary aluminium along with 220,000 tonnes of casthouse products. Eivind Kallevik, President and CEO of Hydro, stated, “This investment significantly enhances our wire rod capacity, enabling us to deliver low-carbon aluminium solutions essential for expanding Europe’s vital infrastructure. It also underscores the robust growth potential within Norway’s thriving aluminium sector.”

The planned casthouse will feature a production capacity of 110,000 tonnes per year and represents Hydro’s most substantial investment in Norway over the past decade. It will manufacture high-quality aluminium wire specifically for power cables that support the continent’s energy networks. Aluminium, recognized by the EU as a critical material, is pivotal for the energy transition, with Norway already contributing 40 percent of Europe’s aluminium output.

Kallevik further explained, “As Europe transitions from imported fossil fuels to renewable power, the infrastructure to transport this energy over long distances becomes increasingly important. Our expansion will not only increase the availability of low-carbon aluminium from Norway to the EU, but it will also bolster Europe’s energy security and support its climate policy objectives.” He added that, despite recent global economic turbulence and reduced overall aluminium demand, there has been a noticeable surge in the market for low-carbon and recycled aluminium. With its advantageous properties—lighter weight, durability, and recyclability—aluminium is particularly suited for the evolving energy sector, especially when compared to heavier alternatives like copper.

The new wire rod casthouse is expected to improve Hydro’s product flexibility in a volatile market, where challenges persist in sectors such as automotive and building systems. By expanding production capacity, Hydro aims to meet the rising demand for aluminium wire in Europe’s rapidly growing energy market. The final decision on the project is anticipated in the fourth quarter of 2025, and the investment forms part of Hydro’s annual investment strategy of roughly NOK 15 billion.

Hydro Karmøy, which began operations in 1967, not only leads in primary aluminium production but also serves as a hub for advanced smelting technology and research and development focused on enhancing production processes. The site includes two casthouses—one for extrusion ingot used in profile production and the other for manufacturing wire rod for high-voltage cables—employing around 550 people and producing a combined annual output of about 490,000 tonnes.

Media contact:

Elitsa Blessi
Investor Relations Officer
elitsa.blessi@hydro.com
+47 91775472

Anders Vindegg
Head of Media Relations, Group Communication
anders.vindegg@hydro.com
+47 93864271

SOURCE: Norsk Hydro ASA