Hydro, a leading aluminium and renewable energy company, has announced a significant investment of €14.8 million to upgrade the recycling facilities at its extrusion plant in Atessa, Italy. The strategic move aims to enhance the plant's recycling capabilities and enable the production of Hydro CIRCAL, a low-carbon recycled aluminium made from 75% post-consumer scrap.
The investment will primarily be allocated towards the acquisition of advanced recycling equipment, including a de-lacquering line, an additional furnace, and facility upgrades. These enhancements will expand Atessa's annual recycling capacity from 30,000 to 40,000 metric tons, with 20,000 metric tons being dedicated to the production of Hydro CIRCAL.
Paul Warton, Executive Vice President of Hydro Extrusions, emphasizes the importance of recycled, low-carbon aluminium for the company's growth and profitability. He states, "The availability of recycled, low-carbon aluminium made of post-consumer scrap is extremely important for our further growth and profitability. It is one of our unique selling points and currently our ambitions exceed our capacity."
The introduction of low-carbon, end-of-life recycled production in Atessa is particularly set to play a crucial role in the growth and profitability of Hydro Building Systems. The additional capacity will also support HBS's ambitions to extend its reach into markets in the Middle East, Asia, and China.
The expansion strengthens HBS's circular economy model, known as the Window to Window concept. This innovative recycling initiative aims to transform old aluminium windows into new ones through a fully traceable process. The W2W concept supports Hydro's sustainability agenda and generates significant economic value by utilizing post-consumer scrap directly sourced from renovation projects.
Italy has numerous refurbishment projects where old aluminium windows and doors are replaced with new ones. The investment will enable the Atessa operations to replace 75% of their current sales volume with post-consumer scrap from these refurbishment projects, further enhancing the plant's sustainability efforts.
Atessa is one of Hydro Building Systems' most profitable operations, serving the Italian and European building and construction market with low-carbon, recycled aluminium extrusions for doors, windows, and facades. In 2023, the plant had an operating revenue of close to €75 million. With brands such as WICONA, TECHNAL, SAPA, and DOMAL, Atessa plays a significant role in HBS's market presence and success.
The investment in Atessa's recycling facilities aligns with Hydro's commitment to sustainability and its goal to reduce its carbon footprint. By increasing the production of Hydro CIRCAL and promoting the Window to Window concept, Hydro is actively contributing to the circular economy and setting an example for the industry.
Oslo Stock Exchange: NHY
Current Price: NOK68.50
Change: +1.25%
The stock is currently in an uptrend, with the price making higher highs and higher lows. The uptrend is supported by increasing trading volumes, indicating a growing interest among investors. The stock is trading above its 50-day and 200-day moving averages, which act as support levels and suggest a bullish trend. The MACD indicator has recently shown a bullish crossover, with the MACD line crossing above the signal line, indicating a potential buying opportunity. The stock has recently retraced to the 23.6% Fibonacci retracement level and found support, suggesting that the uptrend may continue. If the stock maintains its upward momentum, the next resistance levels based on Fibonacci extensions are at NOK72.00 (161.8% extension) and NOK75.00 (200% extension). The stock price is currently trading near the middle of the Bollinger Bands, indicating that the stock is neither overbought nor oversold. A break above the upper Bollinger Band could signal a continuation of the uptrend, while a break below the lower band could suggest a potential trend reversal. Based on the technical analysis, Norsk Hydro stock exhibits a bullish outlook, with the uptrend supported by increasing trading volumes and favorable indicators. Investors should monitor key support and resistance levels, as well as any potential changes in market sentiment or company fundamentals, to make informed trading decisions. The stock's strong performance and positive technical indicators suggest that it may continue its upward trajectory in the near term.
