Norsk Hydro has announced it will focus on strengthening its low-carbon aluminum business and grow its recycling and battery market portfolios over the next five years.
In the company’s five-year strategic business plan, Hilde Merete Aasheim, Hydro’s president and chief executive officer, noted that its extruded solutions business would shape demand for its current recycling portfolio that it plans to build on. This includes doubling its recycled scrap capacity from 2.6mn mt per year at present and expanding its portfolio of 29 recyclers. These initiatives, according to Hydro, will help lift the company’s EBITDA by NOK1-1.5bn ($113-170.8mn).
Hydro will strengthen its low-carbon aluminum segment, as it expects a rise in aluminum demand, especially from the electric vehicle industry over the next five years. Citing CRU International data, the company stated that the demand for aluminum in the automotive industry will grow at an annual rate of 5.2pc to 6.2mn mt by 2030. The aluminum cans industry is also expected to grow by 4.1pc per year to 3mn mt during the same period, providing Hydro with the opportunity to expand its aluminum business.
Hydro, which recently invested in establishing a new battery unit in partnership with Panasonic as part of its Hydro Energy business, plans to make additional investments with other battery companies by 2025 to raise its EBITDA by NOK600-700mn.