The 50/50 joint venture Alusort LLC is established between the Norway-based global aluminum company Hydro and PADNOS, a Michigan-based leader in recycling and scrap management.
Together, the companies plan to install a HySort® sorting machine at PADNOS’ existing sorting hub in Grandville, Michigan. Production is expected to start in 2024. The capital investment for Hydro is estimated at around USD 4 million.
"Digging deeper into the scrap pile and returning more aluminum to the cycle not only contributes to reducing emissions and nature impact – it’s also good business. Alusort represents an exciting opportunity for both companies to strengthen our leading positions in recycling. With our state-of-the-art sorting technology, the joint venture can handle the most mixed and challenging scrap types that otherwise would have ended up in landfills. Instead, we bring it back to life as value-added, low-carbon products for the automotive, building and construction and other key aluminum end markets,” says Hydro President & CEO Hilde Merete Aasheim.
Utilizing state-of-the-art sorting technology, Alusort will sort up to 20,000 tonnes of aluminum scrap per year. PADNOS personnel will run the daily operations, with Hydro personnel providing technical support as well as oversight of the activities.
Alusort will mainly supply sorted aluminum scrap to Hydro’s recycling plants in Cassopolis, Michigan and Henderson, Kentucky, and potentially other Hydro facilities in the United States & Canada. Other metal fractions will be sold to third parties.
“At PADNOS, we look for the next generation of recycling in all materials we handle, from ferrous metals to plastics to aluminum. Collaboration and market demand play critical roles in innovation. Hydro is the perfect partner for us to take aluminum recycling to the next level with our Alusort joint venture,” says Jonathan Padnos, President & CEO of PADNOS.
Access to post-consumer scrap becomes increasingly important for aluminum recycling companies like Hydro in the United States. When cars, buildings or electronic equipment have reached their end-of-life, the materials used in these products can either end up in landfills or be put to good use through recycling.
HySort® technology enables recovery of specific aluminum alloys from these obsolete products, helping return that material back to the same or similar applications for a new useful life.
Alusort important for large-scale production of Hydro CIRCAL
On November 16, Hydro celebrated the official opening of the company’s recycling plant in Cassopolis, just 18 months after breaking ground at the site.
Hydro expects to produce 265 million pounds (120,000 metric tons) of aluminum extrusion ingot per year at the site. In total, Hydro has 11 recycling plants in the U.S. and one in Canada, but Cassopolis is the first to serve as a large-scale producer of Hydro CIRCAL®.
Hydro CIRCAL® contains at least 75 percent post-consumer aluminum scrap, certified by third-party auditors DNV, and has a market leading CO2 footprint of just 2.3 kg CO2e per kg aluminum or less.
“With Alusort, we will introduce our next-generation recycling technology, pioneered in Europe, to capture additional value from upstream sorting activities in the United States. We’ll get access to more scrap types and expand our portfolio of high-quality recycled automotive alloys to our most demanding customers. Alusort is a key contributor and enabler for large-scale production of Hydro CIRCAL,” says Hilde Merete Aasheim.
HySort® is an advanced sorting technology utilizing laser induced breakdown spectroscopy (LIBS) that that allows Hydro to dig deeper into the scrap pile to conserve aluminum that would otherwise end up in landfills. The technology was developed in Europe and currently used at Hydro’s recycling hub in Dormagen, Germany.
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 32,000 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. Hydro is listed on the Oslo Stock Exchange (ticker: NHY).
Published: November 29, 2023