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Norsk Hydro will triple primary aluminium production to 150,000 tpy at its Neuss-Grevenbroich smelter near Dusseldorf, Germany, to feed the facility’s rolling mills.
Ramping up production of primary metal will help Hydro’s rolled products operations in Neuss-Grevenbroich, the company said.
“It will replace costly remelting of cold metal as source for rolled products,” it added.
Hydro will raise primary aluminium production levels at the smelter to about 150,000 tpy from 50,000 tpy now. The smelter has been operating at the lower capacity level since March 2009 and has a total capacity of 230,000 tpy.
Hydro had earlier planned to close the Neuss asset because of high costs, but a German newspaper reported on Tuesday September 4 that it had reversed that decision after the German government moved to provide assistance for energy-intensive companies facing high electricity prices.
“In preparation for a ramp-up of primary sourcing in Neuss, planned for the first half of 2013, Hydro has secured power contracts with Swedish energy group Vattenfall totalling [250MW] annually over five years,” the company said.
“Improved framework conditions, including expected CO2 compensation in Germany, are giving relief to this efficient smelter,” executive vp Oliver Bell added in a statement. “When the expected CO2 compensation is in place, we aim to resume some of the curtailed production in Neuss.”
The production ramp-up will make more in-house metal available for the smelter’s rolling operations, further improving efficiency.
“The change in raw material mix will realise positive system effects for Hydro’s German aluminium activities and is part of our ongoing optimisation efforts and adaptation to challenging market conditions,” Bell said.
Jethro Wookey jwookey@metalbulletin.com Twitter: @jethrowookey_mb