Decarbonization
July 6, 2026
Hydro to restart Slovak plant, strikes deal to supply wire rod to French cable maker
Written by Stephanie Ritenbaugh
Hydro has reached two recent deals involving its operations in Europe.
The company inked a deal with the Slovak government to restart its Slovalco aluminum plant.
The agreement will enable the initial restart of 75,000 tonnes of primary aluminum production capacity after the facility curtailed operations in 2022 due to high power prices. It includes a compensation scheme for indirect carbon costs under the EU Emissions Trading System. In addition, Slovalco has entered a long-term commercial power purchase agreement with Vodohospodárska výstavba, š.p.
The decision to restart Slovalco is dependent on approval of the updated Slovak scheme for compensation of indirect carbon costs by the European Commission.
Slovalco will invest euro 100 million to restart production, which will support more than 200 jobs in the region. Aluminum production is expected to start during fourth quarter of 2026, the company said.
Hydro will restart the first 75,000 tonnes of a total 175,000 tonnes annual aluminum production capacity at the Slovalco plant. The remaining 100,000 tonnes will depend on the framework conditions beyond 2030 combined with additional power contracts, Hydro said in the announcement.
EU-based aluminum production capacity has been under pressure from high energy costs and increasing global competition, with about 50% of the region’s production curtailed since 2022.
Hydro owns 55.3% of the aluminum plant Slovalco and 44.7% is owned by Penta Investments Group.
Hydro, Nexans ink wire rod deal
Hydro also has struck a five-year agreement with French cable maker Nexans to supply about 85,000 tonnes of low carbon aluminum wire rod between 2026 and 2030.
The agreement supports grid modernization and decarbonization with material produced using renewable energy in Norway.
Hydro had already announced plan to expand aluminium wire rod capacity at its Karmøy plant in Norway. That facility is expected to start production in 2028.
