Slovalco’s Slovakian plant will stop producing primary aluminum, Norwegian company Norsk Hydro, the company’s main owner, said.
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The decision was made against the backdrop of “unfavorable conditions and high electricity prices, which are not expected to decrease in the short term.” The process of curtailing production will be completed by the end of September, while aluminum processing will continue.
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“Slovalco is a modern, well-managed aluminum smelter capable of offering quality products to European consumers. I am sorry that we were not able to ensure the continuation of work on primary production at the plant,” said Ola Sater, Chairman of the Board of Directors of Slovalco.
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Slovalco at the end of 2021-beginning of 2022 reduced production by 40 percent (maximum capacity allows for the production of 175 thousand tons of products per year). The company allows the resumption of full-fledged work in the future, if the situation in the market allows it.
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Electricity prices in Europe are rising against the backdrop of rising gas prices, which provide part of the generation. Serving as a benchmark for the region, contracts for the supply of electricity in Germany have risen in price six times over the year.
