Norwegian aluminum producer Hydro has unveiled plans to invest NOK 1.65 billion ($156 million) in a new wire rod foundry at its Karmøy facility. This marks the company’s largest investment in Norway in a decade. The plant will supply aluminum wire for power cables across Europe and is expected to have an annual production capacity of 110,000 tonnes. Completion is scheduled for the first quarter of 2028, pending a final decision by the end of 2025.
Hydro invests NOK 1.65 billion to supply Europe’s electric infrastructure with low-carbon aluminium
Hydro President and CEO Eivind Kallevik emphasized the importance of the investment, stating that it will enhance the company’s ability to deliver low-carbon solutions essential for Europe’s energy infrastructure development. He noted that aluminum, recognized by the EU as a critical material, plays a vital role in transporting electricity over long distances, making it indispensable for Europe’s energy transition.
EU acknowledges aluminium’s vital role, includes it in the critical raw materials list
Norway currently produces 40% of Europe’s aluminum, leveraging renewable hydropower to achieve one of the lowest carbon footprints globally. Hydro’s Karmøy facility is among Europe’s largest primary aluminum plants and features cutting-edge technology for energy-efficient production. The new foundry will complement existing operations, which include casthouses producing extrusion ingots and wire rods for high-voltage cables.
Aluminum Produced in Norway Has the World’s Lowest Carbon Footprint.
The investment comes amid growing demand for low-carbon aluminum solutions as Europe transitions from fossil fuels to renewable energy sources. Aluminum’s light weight and durability make it a preferred material for energy infrastructure, including power cables and electric vehicles. Hydro has reported increased sales of low-carbon aluminum despite weaker overall demand in recent years.
