Norsk Hydro announced that its Slovalco aluminium joint venture has reached an agreement with the Slovak government to partially resume production at its plant in Ziar nad Hronom after a four-year shutdown. The deal includes a long-term power supply contract with state-owned utility Vodohospodarska Vystavba and a compensation scheme for indirect carbon costs under the EU Emissions Trading System (ETS). Slovalco is 55.3% owned by Norsk Hydro and 44.7% by Penta Investments Group.
The restart will involve an investment of €100 million ($14 million) and will bring 75,000 metric tons per year of smelting capacity back online, with production expected to begin in the fourth quarter of 2026. The resumption of the remaining 100,000 tons of capacity beyond 2030 will depend on additional power contracts and market conditions.
The Slovalco plant was forced to halt primary aluminium production in September 2022 due to high power prices, which made operations unprofitable. At its peak capacity, the plant produced around 200,000 metric tons/year. Slovak Prime Minister Robert Fico has been a vocal advocate for restarting the plant, calling aluminium a strategic material and emphasizing the need for European solutions to high energy prices affecting heavy industry. The move is expected to support over 200 jobs and boost the European aluminium market, which has faced supply shortages due to closures like the Mozal smelter and war-driven constraints.
