Hydro Invests NOK 1.65 Billion in New Wire Rod Casthouse in Norway

Aluminum coils in a factory warehouse

Hydro, a leader in the aluminum and renewable energy sectors, has announced a NOK 1.65 billion (about $157 million) investment to establish a new wire rod casthouse at its aluminum smelter in Karmøy, Norway. According to Hydro, this facility will produce low-carbon aluminum for the rapidly growing energy infrastructure market in Europe, supporting the continent’s ongoing transition to renewable energy. Hydro says the production is expected to commence in 2028, with the casthouse designed to have a production capacity of 110,000 tonnes annually.

Eivind Kallevik, President and CEO of Hydro, highlighted the strategic significance 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 demonstrates that a productive aluminum industry has good growth opportunities in Norway.” 

The Karmøy wire rod casthouse will be Hydro’s largest investment in Norway in the past decade and will primarily produce aluminum wire for power cables. Hydro noted that aluminum is classified as a critical material by the EU, and currently, Norway accounts for 40% of Europe’s aluminum production.

Aluminum: Key to Europe’s Energy Transition

As Europe accelerates its energy transition, aluminum plays an essential role in the renewable energy landscape. The lightweight, durable, and recyclable properties of aluminum make it an ideal material for the power cables that will transport renewable electricity across the continent.

Kallevik noted that the demand for low-carbon aluminum is increasing as more industries and energy providers recognize the need to incorporate sustainable materials into their projects. “We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials. Despite generally weaker demand in 2024, Hydro sold more low-carbon and recycled aluminum last year than in both 2023 and our record year in 2022,” Kallevik added.

Hydro said that the new casthouse will enhance product flexibility in an unpredictable aluminum market, where demand from the automotive and construction sectors remains particularly volatile. By adding this wire rod casthouse, Hydro will be able to produce more aluminum wire to meet the needs of a rapidly expanding market.

“Europe’s transition from imported fossil energy to domestically produced renewable power opens an exciting market when the infrastructure behind the electrification wave is to be built. Our ambition is for Hydro to play a key role as a stable, reliable supplier of the aluminum solutions Europe needs to succeed,” Kallevik stated.

Hydro revealed that the final decision on whether to move forward with the construction of the casthouse is expected by the fourth quarter of 2025. If approved, the project will be part of Hydro’s broader annual investment plans, which total approximately NOK 15 billion (about $1.4 billion). This investment will not only bolster Hydro’s position in the global aluminum market but also support Europe’s climate goals and its energy security in the face of ongoing challenges.