Hydro already has three presses at the plant in Itú, near São Paulo, with one of the three dedicated to heat transfer components and solutions. The other two are used to serve general extrusion customers.
The new press will be the largest of the three operated by Hydro's extrusion company in Brazil. The size of the press means the company can supply longer and larger aluminium profiles, mainly to the transportation segment.
The press scheduled to be in operation by January 2013.
The company said there was ample room to increase the use of aluminium extrusions in Brazil, where annual per capita consumption is less than half the figure in the USA.
Hydro recently expanded its operations in Brazil with bauxite, alumina and metal assets.
The investment is also in line with Hydro's downstream strategy, said executive vice president Hans-Joachim Kock, who is responsible for the company's worldwide extruded products operations.
"We are emphasizing greater development in the emerging markets in South America and Asia," said Kock, pointing out that Hydro recently approved the addition of two new presses at its plant in China.
The Brazilian plant, known as Hydro Alumínio Acro, was acquired by Hydro in 1997. The company has 330 employees. Hydro also has a precision tubing operation, which handles heat transfer applications, and a remelting facility at the Itú site.