Hydro to Shut Down UK, France Plants Amid Downstream Aluminium Market Weakness

Published: May 12, 2025 09:56

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[Hydro to Close Extrusion Site Amid Downstream Market Weakness]

Norwegian aluminium producer Hydro has announced the closure of its extrusion site in Birtley, UK, and an anodising facility in Luce, France, citing continued weakness in the downstream aluminium market and compressed recycling margins. Additionally, Hydro will reduce recycling capacity in Puget, France by 30,000 tonnes. Decommissioning is already underway in Birtley and will be completed by the end of June, while the Luce facility will shut down by September.

The company attributed the decision to tightened aluminium scrap supply and declining margins, which are impacting re-melt production. In response, Hydro aims to cut hot metal costs by USD 20–30 per tonne by 2030, with one-third of those savings targeted for realization by 2025. In its Q1 2025 financial update, Hydro reported an 18.3% drop in EBITA to NOK 1,174 million, driven by lower extrusion sales and weakened recycling margins. While European extrusion demand fell 1% year-on-year in Q1 2025, it rose 16% from the previous quarter, partly due to seasonal factors.

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