Hydro on track to build aluminium recycling plant in Michigan

Construction of the plant in Cassopolis, Michigan is set to start in early Q2 2022, with production commencing in 2023.


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Metal Recycling
 
November 20 2021
 
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Hydro announced it has made the investment decision for the construction of a new state-of-the-art aluminium recycling plant in Cassopolis, Michigan. The facility is expected to have a capacity of 120,000 tonnes of aluminium extrusion ingot per year and employ around 70 direct employees. Construction is set to start in early Q2 2022, with production commencing in 2023.  

“The Cassopolis greenfield development will mark the first large-scale production of Hydro CIRCAL extrusion ingot in North America. We look forward to bringing this high-quality, low-carbon product to our most demanding customers,” said Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal.

Hydro said the CIRCAL extrusion ingot will contain at least 75 percent post-consumer scrap certified by third-party auditors DNV GL, and has a CO2 footprint of just 2.3 kg CO2e/kg aluminium, which is the lowest on the market at present.  

Applications will include critical automotive applications and other transportation sectors, consumer applications and building systems. In anticipation of the capacity at Cassopolis, Hydro said it will deliver initial quantities of Hydro CIRCAL to U.S. customers from its plant in Commerce, Texas, before the end of 2021. 

“The Cassopolis project represents a key stepping-stone toward Hydro’s goal of doubling recycling of post-consumer scrap in its production processes and providing an EBITDA uplift of NOK 0.7-1.1 billion from the recycling operations by 2025,” Kallevik stated.

The expected investment is currently estimated to be around $140 million, depending on final facility design, market conditions and macroeconomic development. By applying technologies developed at the Hydro recycling plants in Clervaux, Luxembourg, and Azuqueca, Spain, Hydro will be able to recycle up to 40,000 tonnes of post-consumer scrap at the new facility while delivering high-quality aluminium capable of meeting demanding automotive requirements, according to the statement.

 

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