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Hydro Investing $15 Million in Henderson Plant to Expand Recycled Aluminum Production

Investment will further position Hydro as North American leader in low-carbon, recycled aluminum production

[Henderson, KY, July 28] – Hydro is investing $15 million into its Henderson, KY facility to deliver certified recycled aluminum products to the automotive industry and further reduce the environmental impact from production.  This investment will enhance Hydro’s position as the leading producer of low-carbon, recycled aluminum in North America.

“Henderson is on a roll, and Hydro’s investment is just the latest in a series of exciting announcements bringing quality jobs and new opportunities for families in this community,” said Gov. Andy Beshear. “From the I-69 Ohio River Crossing to landing the largest economic development project in Western Kentucky in 25 years, this is an exciting time for Henderson and the entire region. I want to thank Hydro’s leadership for their continued investment in Kentucky and our workforce, and I look forward to seeing the company’s continued success for years to come.”

The investment will support two key projects. Hydro will install a new homogenization furnace to improve the plant’s capabilities to meet the specifications of the growing U.S. automotive market, enabling Hydro Henderson to produce a greater volume of advanced alloys using recycled metals with a lower carbon footprint.

“At Hydro we want to accelerate the green transformation of the aluminum and automotive industries by increasing our use of post-consumer scrap to pull more used material into the value chain and promote a circular economy, while also delivering our automotive customers advanced, high strength alloys,” said Trond Gjellesvik, Vice President of Hydro. “As carmakers continue to make metal substitution decisions, particularly for electric vehicles, our investments allow us to support our forward-leaning customers in reaching their climate ambitions.” 

Hydro will also install a new baghouse – a state-of the-art dust and gas collector for reducing air emissions – that will allow the plant to use greater volumes of post-consumer scrap and explore new, more difficult types of scrap, like material with paint or other contamination, which requires advanced equipment to recycle. The new baghouse will also improve the air quality inside the plant and reduce the overall environmental footprint from operations.

“The first Hydro aluminum recycling plant built in the U.S. is here in Henderson, where we are pleased to have provided good career opportunities while supporting aluminum recycling throughout the Midwest now for nearly 25 years,” stated Seth Augustine, the Henderson plant manager. “With these new investments, we look forward to doing so for the next 25 years and being a growing part of the expanding Kentucky automotive industry.”

These two projects will enable the Henderson plant to produce industry-leading volumes of recycled, low-carbon aluminum, including the proprietary advanced material, Hydro CIRCAL®, creating an opportunity to supply Hydro’s most progressive, sustainability-focused customers with this cutting-edge product. Hydro CIRCAL® is made with a minimum of 75% recycled, post-consumer aluminum scrap, certified by third-party auditors DNV GL, and has a market-leading CO2 footprint of just 2.3 kg CO2e/kg aluminum, or less. The initial volumes from Hydro’s Henderson facility will be between 2 and 4,000 tonnes per year.

To encourage investment and job growth in the community, at its July meeting the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Reinvestment Act. The performance-based agreement can provide up to $1 million in tax incentives based on Hydro’s investment exceeding $8.5 million. Annual targets include:

  • Maintaining at least 47 full-time local jobs across 10 years; and
  • Across the local workforce, paying an average hourly wage of $49, excluding benefits.
  • By meeting its annual targets over the agreement term, the company may claim eligible incentives against its income tax liability. 

Community Reacts 

Brad Schneider, Henderson County Judge Executive

“On behalf of Henderson County Fiscal Court, I offer our thanks and gratitude to leadership at Hydro Aluminum for this investment in the facility here. Hydro has become an established, well-regarded member of Henderson County’s industrial community and we believe and hope this update of the plant means Hydro will remain a corporate citizen in our county for decades to come.”

State Sen. Robby Mills

“The investment Hydro Aluminum is making in Henderson is great news and speaks volumes for our workforce in NWKY. Corporate citizens like Hydro do not invest the sums of money this announcement represents unless they are happy with their current business situation. I am thankful for Hydro and wish them and their Henderson team much success in the future.” 

State Rep. Jonathon Dixon

“Hydro Aluminum has provided individuals with good-paying careers in Henderson. They have continuously improved its facility with a focus on clean initiatives while maintaining a high-quality product. It’s great to have a company like Hydro Aluminum that invests and cares about our community.” 


About Hydro

Hydro is a leading industrial company that builds businesses and partnerships for a more sustainable future. We develop industries that matter to people and society. Since 1905, Hydro has turned natural resources into valuable products for people and businesses, creating a safe and secure workplace for our 31,000 employees in more than 140 locations and 40 countries. Hydro is present in a broad range of market segments for aluminum, energy, metal recycling, renewables, and batteries, offering a unique wealth of knowledge and competence to our customers and partners.

In North America, Hydro has two business units with a total of more than 6000 employees. Hydro Aluminum Metals is a provider of recycling-based aluminum metal billets as well as primary foundry alloys. Hydro Extrusions provides high-quality extruded profiles. Hydro has been in aluminum manufacturing in North America since 1999 and today the company owns facilities across the country, some with a history dating to the 1940s. Hydro’s operations include two dedicated aluminum recycling facilities in Kentucky and Texas, more than 20 extruded products manufacturing locations and eight casting facilities. In addition, Hydro operates two technology centers in Zeeland and Troy, MI. Hydro is present in a broad range of market segments including automotive, buildings and construction, transport and infrastructure and consumer durables, offering a unique wealth of knowledge with local presence combined with a global network and competence to our customers and partners.

Hydro is listed on the Oslo Stock Exchange (ticker: NHY). Hydro USA

About Hydro CIRCAL®

Hydro CIRCAL® is Hydro’s proprietary brand of recycled aluminum made with a minimum of 75% recycled, post-consumer aluminum scrap, certified by third-party auditors DNV GL, and has a market-leading CO2 footprint of just 2.3 kg CO2e/kg aluminum or less.

Through advanced sorting and processing technology, Hydro can create advanced materials with the highest post-consumer recycled content in the market. As a result, Hydro drastically reduces energy use in the production phase while still offering high-quality aluminum with equivalent metallurgical properties that maintain the strong material and corrosion resistance needed in automotive components.