Norwegian aluminum producer Norsk Hydro may close a primary aluminum plant in Slovakia, of which it owns a 55.3% stake, unless it receives financial help from the government's carbon compensation scheme.
Due to surging energy costs, many European aluminum smelters have reduced their production by 800,000 to 900,000 tons annually in recent months, thereby raising the prices in the transport, packaging, and construction industries.
The Slovalco plant has an annual production capacity of aluminum of 175,000 tons. The current operation rate is 60% of the full capacity, at 105,000 tons only.
Company spokesman Halvor Molland said that many countries, including Germany, Norway, and the Netherlands have chosen to support aluminum producers with carbon compensation, while Slovakia hasn’t. After Slovalco’s power contract is due at the end of this year, it will be more challenging for the plant to keep its aluminum production.
Hydro may close 55.3%-owned aluminum plant in Slovakia unless it receives government financial support
26 May 2022 15:23 reported by Joy Liu
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