Norsk Hydro to Build New Wire Rod Casthouse in Karmøy, Norway

Karmøy, Norway – Norsk Hydro ASA, a leading aluminum and energy company based in Oslo, has announced plans to construct a new wire rod casthouse at its aluminum smelter located in Karmøy, Norway. This venture represents Hydro's most significant investment in Norway in a decade, with an estimated cost of 1.65 billion Norwegian kroner, or approximately $15.7 million. The new facility is expected to commence production in 2028. ## Investment to Strengthen Energy Infrastructure

Eivind Kallevik, Hydro's President and CEO, emphasized the importance of this investment, stating, “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 expansion underlines the growth opportunities available within the productive aluminum sector in Norway.

According to Hydro, the European Union recognizes aluminum as a critical material, and Norway currently contributes to around 40 percent of the aluminum output in Europe. The wire rod casthouse will focus on producing aluminum wire specifically for power cables used in Europe’s energy sector, enhancing the region's ability to transition towards renewable energy sources.

Project Timeline and Capacity

The decision to proceed with the construction of the new casthouse is conditional upon final approval, which is anticipated in the fourth quarter of 2025. This project is part of Hydro's comprehensive annual investment plan, which totals approximately 15 billion Norwegian kroner (or $1.4 billion). The new casthouse is expected to have an annual capacity of 110,000 metric tons, contributing to greater product flexibility in a fluctuating aluminum market.

Role in Europe's Energy Transition

Eivind Kallevik highlighted the relationship between aluminum and the broader goals of Europe’s energy transition. “Europe's energy transition is about one thing—more renewable power production,” he stated. He noted the vital role of aluminum in transmitting electricity over long distances, thereby supporting the infrastructure essential for Europe’s future energy systems.

In recent times, while a global downturn has negatively impacted aluminum demand, Hydro reported increased sales of low-carbon aluminum. The company points to advantages such as weight, durability, and recyclability that make aluminum a preferred choice for newer energy solutions. Notably, an aluminum conductor with comparable electrical conductivity to copper weighs about 50 percent less.

Kallevik further remarked, “We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials.” Despite facing challenges in 2024, Hydro sold more low-carbon and recycled aluminum last year than in both 2023 and its record year in 2022. ## Commitment to Sustainable Solutions

As Europe moves towards a more sustainable energy framework, Kallevik expressed Hydro's ambition to be a reliable supplier of the essential aluminum solutions that Europe requires to succeed. "Our ambition is for Hydro to play a key role as a stable, reliable supplier of the aluminum solutions Europe needs to succeed,” he concluded.

This new project aligns with the ongoing trend of supporting critical energy infrastructure with environmentally friendly materials as Europe continues its pursuit of energy independence and sustainability.

For more information, visit Hydro’s official website.

This article presents a comprehensive overview of Norsk Hydro ASA’s latest investment plans, capturing key details and implications for the aluminum industry and Europe’s energy landscape.