European value-added aluminum company Constellium NV announced this week that its subsidiary Norðurál Grundartangi ehf has opened a new $ 120 million low-carbon aluminum billet smelter in Iceland.

According to the company, the new smelter will have a nominal capacity of 150,000 metric tonnes per year when commissioned in early 2024. The new aluminum smelter will also increase Grundartangi’s overall production capacity by 60,000 metric tonnes per year. to 120,000 metric tons. per year. In addition to increasing capacity, the new construction will provide another 90 jobs to the local economy.

President and CEO Jesse Gary said in a press release that the new addition will dramatically change the plant’s product offering when completed.

“We are very happy to bring billet production to Grundartangi and, from 2024, bring low carbon Natur-Al ™ billets to the European market. When completed, the new foundry will allow Grundartangi to produce over 80% of its production as value-added products, further strengthening this world-class asset. Additionally, by using renewable electricity to further transform our aluminum into billets in Iceland, we are not only creating a more valuable product, but we are also strengthening the Natur-Al ™ brand and reducing the carbon footprint of the production of aluminum throughout Europe. We are proud to announce that the project will be fully funded by Icelandic green funding from Arion Bank and powered by green energy from our partners in Landsvirkjun.

Constellium, based in France, was founded in 1855 under the name Henri Merle et Compagnie and subsequently renamed Pechiney in 1950. Pechiney was bought by Alcan in 2003, which was bought by Rio Tinto in 2007. In 2011, Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and FSI (10%). Constellium manufactures rolled and extruded aluminum products from various alloys, generating sales of 4.9 billion euros in 2020.