Norway's Hydro to cut Slovakia aluminium output due to power cost
The decision will bring production down to around 60 percent of capacity and comes in response to very high electricity prices showing no sign of improvement in the short term.
Slovalco is currently in the process of executing a previous decision to curtail production down to 80 percent by 31 December. Further curtailment will start at the end of January 2022. A further reduction of capacity down to 60 percent corresponds to an additional annual reduction of 35 000 tons of production.
The curtailment decision will affect primary foundry alloy volumes at Slovalco. Customer commitments will be fulfilled from Hydro’s Norwegian production system. Slovalco’s remelting operation is not affected by the curtailment. Slovalco will continue to monitor the situation closely in the coming weeks and months.
Slovalco is a fully consolidated aluminium smelter in Hydro, owned 55.3% by Hydro Aluminium AS and 44.7% by Penta Investments Group. Slovalco has an annual production capacity of 175,000 tonnes of primary aluminium and a casthouse capacity of approx 250,000 tonnes.
On December 2, the Board of Directors at Hydro’s majority owned Slovalco primary aluminium plant in Slovakia has decided to recommend to the shareholders of the company to curtail maximum 20% of the plant’s primary aluminium production, responding to the weakening market environment. ■