“Hydro has focused our R&D efforts for the past 20 years in the US on moving aluminium extrusion ingot manufacturing from primary-based to recycling-based production,” Pitchford told Fastmarkets.
The move comes amid growing interest in low-carbon aluminium from auto manufacturers.
“In recent years, we have focused on developing new aluminium alloys that allow for increasing amounts of post-consumer, or end-of-life, aluminium scrap in the production of these alloys,” he added.
The Norway-based company is expanding its technology center next to its recycling plant in Cassopolis, Michigan and increasing recycling capacity of its plants in Cressona, Pennsylvania, the company announced last week.
The Cassopolis plant produces 120,000 tonnes per year of aluminium extrusion ingot. A technology center previously located in Zeeland, Michigan, has been relocated to the facility and expanded to support initiatives there, as well as in Henderson, Kentucky, and Commerce, Texas.
The Cressona facility’s recycling capacity will increase to more 270,000 tpy and the expansion will enable the plant to process 64,000 tonnes of post-consumer scrap annually, an addition of 30,000 tonnes.
According to Pitchford, the team in Cassopolis is developing Hydro’s proprietary HyCrush and HyBeam automotive alloys and also supported trials of other automotive products such as Hydro CIRCAL, which contains more than 75% post-consumer scrap.
Peter Hedman, director of marketing and communications at Hydro Extrusion North America, told Fastmarkets that supply tightness and the quality of aluminium scrap drives up costs for sorting lower-grade scrap into specific alloys.
“There are investments with both the metals branch and the extrusion side to partner with recycling companies on new sorting technologies. There are also a lot of opportunities for more scrap to come into the mainstream, particularly the growing green demand that puts more pressure on the market to respond,” said Hedman.
Hydro has been working to recycle more post-consumer scrap to lower its carbon footprint and reduce waste.
Fastmarkets last assessed the aluminium low-carbon differential P1020A, US Midwest at zero cents per lb on Friday October 4. The aluminium low-carbon differential for value-added product, US Midwest was also at zero on Friday, down from 0-1.5 cents per lb on September 13.
“Although the US market still trails the European market somewhat, we see a similar pattern of activity that we saw in Europe, with first some curiosity; curiosity leading to inquiries; inquiries leading to trials, and trials now turning into customer orders,” said Pitchford.
He added that there has been interest from original equipment manufacturers and other large end consumers in Hydro’s Alusort joint venture’s efforts to take more post-consumer scrap back into the loop.
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