Aluminum Scrap Markets
June 17, 2026
Hydro to close California extrusion plant, Louisiana remelt billet facility
Written by Nicholas Bell
Hydro plans to close two US facilities in 2027, including its Delhi, La., plant, which produces remelt billet, as the company consolidates production within its North American network.
The company announced June 17 it will close its extrusion facility in City of Industry, Calif., and its Louisiana, facility. Operations in City of Industry will conclude Jan. 1, with limited activity continuing through the first quarter. Operations in Delhi will shutter April 1, followed by a wind-down period through the third quarter.
Hydro attributed the decision to low capacity utilization and the need for significant capital investment. The company said the closures will affect about 350 employees. Production transfers to other North American facilities have already begun.
Facilities’ roles
Both sites performed different functions within the company’s extrusion network.
City of Industry operated as an extrusion and fabrication plant. Established in 1958, the site employed about 180 people as of May 2025 and produced extruded aluminum products and fabrication services, according to Hydro’s Aluminum Stewardship Initiative Chain of Custody certification. The facility’s 6000-series extrusions used both primary as well as secondary billet supplied through Hydro’s North American network.
Delhi combined extrusion, fabrication, anodizing, and remelt operations. Established in 1983, the site employed about 225 people and operated one of Hydro’s nine US remelt facilities as of May 2025, according to the company documentation.
The average cast 6000-series billet used a feedstock mix consisting of about 30% primary aluminum, 57% pre-consumer scrap and 13% post-consumer scrap, according to Hydro’s Environmental Product Declaration, issued May 1, 2024.
Hydro acquired both facilities through its ownership of Sapa Extrusions. Hydro and Orkla formed Sapa as a 50-50 joint venture in 2013. It acquired Orkla’s remaining interest in 2017.
Remelt billet impact
The Delhi closure will affect more than extrusion operations.
According to CRU’s Aluminum Casthouse Shapes Market Outlook published in August, the facility accounted for about 5% of Hydro’s US remelt billet nameplate capacity. While that suggests Delhi was a relatively smaller contributor within Hydro’s US remelt network, the site also housed three extrusion presses and provided fabrication and anodizing services.
Hydro’s announcement did not specify how much extrusion or billet capacity will transfer to other locations. However, the company said retooling and production transfers have already started and are expected to be completed by the end of the first quarter of 2027.
The company operated 25 North American locations as of 2025, including extrusion, fabrication, remelt and support facilities across the United States, Canada and Mexico.
