The plant will have an initial capacity of 35kt and will cost NOK260M ($39.8M). It will employ 40 people.

The final build decision is planned for the spring of 2011 and the recycling facility expected to start operation in summer 2012.

It will then be in position to take in and recycle dross and scrap from all of Hydro’s aluminium plants in Norway. Dross is a residue from the casting process, with high aluminium content.

The plant will also be able to recycle aluminium from external sources in Scandinavia and Iceland.

The recycled metal will be used by Hydro’s product casthouse at Karmøy, and will partly offset the previous Søderberg potlines, closed in March 2009.

Construction work will start when the demolition of the closed Søderberg lines has freed up the area to be used for the recycling plant.

The decision kicks off the process to obtain the necessary approvals based upon an environmental impact assessment.

These further evaluations will also clarify to what extent parts of the concrete and steel structures in the former potlines can be used.

First stage in the construction will include one tilting rotating furnace with a capacity of 35kt as well as all buildings, filter plant and infrastructure.

The stage also includes equipment for liquid metal transportation into the product casthouse as well as for casting into sows.

Stage two, planned to start when the first furnace is running at full capacity, will include a second furnace with a capacity also of 35kt.