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Hydro Aluminium Metal has signed a Letter of Intent (LoI) to acquire a property in Cassopolis, Michigan in the U.S., with the aim of constructing a state-of-the-art aluminum recycling plant producing aluminum extrusion ingot for use in critical automotive applications as well as other transportation and building systems.

The LoI between Hydro Aluminium Metal and landowner Midwest Energy and Communications (MEC) is based on Hydro’s intention to build a facility in Cassopolis producing 120,000 metric tonnes per year from 2023 with around 70 direct employees.  The total project investment is currently estimated to be around $120 million, depending on final facility design, market conditions and macroeconomic development. 

The Cassopolis greenfield development will also mark the first large-scale production of Hydro CIRCAL® extrusion ingot in North America.  Unique to Hydro, Hydro CIRCAL® extrusion ingot contains at least 75% post-consumer scrap certified by third party auditors DNV GL and has a market-leading CO2 footprint of only 2.3 kg CO2e/kg aluminum. The plant will produce these products using a technology pioneered by Hydro in its facilities at Clervaux, Luxembourg and Azuqueca, Spain.    

The facility will be the first manufacturing plant located at MEC’s Smart Park, a planned industrial and commercial development located in Cassopolis.  Hydro will utilize direct rail service to bring supplies to the plant, helping to lower the overall carbon footprint of its operations, and plans to partner with MEC to source renewable electrical power for the facility. Hydro aims to make a final investment decision on the planned greenfield development in Cassopolis before the end of 2021.