Hydro Bets Big on Lower Carbon Aluminum

SEATTLE (Scrap Monster): Hydro Extrusions North America recently placed a large bet on lower-carbon aluminum. Indeed, the company, which manufactures custom extrusion products, aims to lead the North American market on green aluminum. The big question remains whether U.S. consumers are willing to pay for it.

Investments by Hydro Extrusion’s North American entity factor into the company’s 2030 global strategy to expand both extrusions and recycling. Recent investments made by Hydro will increase the amount of scrap in its melt mix, thus offering customers a lower-carbon option. 

Hydro’s investment in North America remains underpinned by strong growth. Indeed, this has pushed the company past where it stood before the Great Recession. For instance, during the second half of last year, the company ran at full capacity, with roughly 20% of its products going to service centers. That said, the market has seen a notable shift of late. Except for trucks and trailers, which continue to show a strong build rate this year, demand from almost all other sectors dropped. 

During the Great Recession there was a truck/trailer build rate of an estimated 80,000 units. According to a recent interview with Charlie Straface, Business Unit President for Hydro Extrusions North America, this year, that volume rose to 300,000 units amid strong performance of that sector. Straface told MetalMiner that Hydro forecasts a slight fall in overall truck and trailer production, down to 280,000 units in 2024. 

Hydro specializes in complex, high-strength extrusions in the 6000 series alloy family. The company has a specific advantage in 6061 and 6082 alloys, which utilize larger presses (10, 12, and 14 inches).

Courtesy: www.agmetalminer.com