Hydro has signed an agreement to purchase land for constructing a new aluminium recycling plant in Torija, Spain.
This land purchase agreement was signed with a subsidiary of the Pulsar Properties Group.
The company is planning to invest €130m ($140.4m) to €140m ($149.8m) for the entire project, subject to the final facility design, market conditions, as well as certain macroeconomic developments.
A final investment decision from Hydro is expected to be announced by the end of the year.
Hydro’s executive vice-president for Aluminium Metal Eivind Kallevik said: “The European and Iberian market for aluminium continues to grow.
“This investment will be an important step towards Hydro’s ambition to recycle more post-consumer aluminium, strengthening our position to capture value from growing demand for greener and circular aluminium.”
Once constructed, the new plant is projected to have a recycling capacity of 120,000 tonnes of aluminium every year and will provide 65 direct employment opportunities.
The facility will also be able to produce Hydro CIRCAL and other recycled low-carbon aluminium that will have a carbon dioxide (CO₂) footprint of 4kg per kilogram of aluminium or below.