On June 30, Hydro acquired the Polish aluminum recycling company Alumetal S.A., completing its tender offer for more than 97 percent of the shares. Hydro will increase its expertise in recycling aluminum scrap as a result of the transaction. Alumetal will strengthen its competitive position by leveraging into the structures of one of the world's leading global aluminum companies.
Increased focus on recycling
Hydro has set ambitious recycling targets. By 2025, the company aims to double its use of post-consumer aluminum scrap. Compared to pre-consumer/process scrap as well as primary aluminum, this will enable a significant reduction in the CO2 footprint. The acquisition will enable Hydro to strengthen its recycling position in Europe and expand its product offering in the low-carbon and scrap-based cast alloys market.
"With this acquisition, Hydro and Alumetal together become the leading integrated aluminum recycling company in Europe. This will enable us to offer more low-carbon and recycled aluminum products based on post-consumer scrap, further strengthening our commitment to helping our customers achieve their sustainability goals. The addition of Alumetal to the Hydro family will also contribute to a stronger circular economy in the aluminum value chain and promote an increasingly circular economy in Europe," explains Eivind Kallevik, Executive Vice President of Hydro Aluminium Metal.
As the company continues to position itself, Hydro will actively support Alumetal in the areas of operational excellence, safety, and growth. Alumetal will be a stand-alone company within the Hydro family and will continue to operate with its current business, organizational and operational model.
"The acquisition shows how extraordinary the efforts of the Alumetal team have been over the last 20 years, demonstrates our significant growth path and the intense development within our organization. I am very proud of our employees, and we look forward to an even more exciting future together with Hydro," said Agnieszka Drzyżdżyk, President and CEO of Alumetal.
Hydro and Alumetal will now begin the process of integrating the Polish recycler into Hydro. The two companies celebrated the successful completion of the transaction on July 10 at Alumetal's headquarters in Kety, Poland.
