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September 7, 2022

Norsk Hydro unit blocks 2023 deals to buy aluminium from Russia

Hydro Extrusions has launched a tender seeking primary aluminium produced using renewable energy.

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A division of Norwegian aluminium and renewable energy company Norsk Hydro will stop deals to purchase aluminium from Russia for next year, as reported by Reuters.

Norsk Hydro’s Hydro Extrusions unit supplies aluminium products for the automobile and construction industries among others.

Companies currently under contracts with Russian aluminium producer Rusal have continued to buy aluminium from it.

But in the wake of Russia’s invasion of Ukraine, some of these firms have begun seeking other sources for the metal in an effort to stop supplies from Russia next year.

Norsk Hydro spokesperson Halvor Molland did not disclose the amount of aluminium its extrusions division was planning to purchase next year, but said that the aluminium was for its operations in Europe.

Hydro Extrusions recently launched a tender seeking primary aluminium produced using renewable energy. The date or the deadline for the offers were not disclosed.

The tender excludes bids from Australia, India, Azerbaijan, Iran, Kazakhstan and South Africa.

Reuters quoted Molland as saying: “There are different reasons for excluding different origins, including carbon footprint.

“The reason for excluding Russian origin metal is linked to Hydro’s decision in March, following the invasion of Ukraine, to not enter new contracts with Russian-linked counterparts.”

Rusal currently supplies 6% of primary aluminium needs worldwide, which analysts have estimated at around 70 million tonnes this year.

Hydro Extrusions consumes around two million tonnes of primary aluminium a year and receives some of its metal from Norsk Hydro.

Because it operates as an independent unit, the business needs to buy a certain amount of its aluminium from external sources.

In March this year, Norsk Hydro announced its decision not to sign new contracts with producers tied to Russia until further notice.

Last month, the company announced plans to close its majority-owned primary aluminium production at the Slovalco aluminium facility in Slovakia.

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