Aluminium can be recycled infinitely without losing the properties that make it ideal for a wide range of applications. It is a key material for the green transition. Recycling aluminium also requires only five percent of the energy needed to make primary metal in a smelter. Despite this, large volumes of aluminium scrap are exported from Europe instead of going back into the loop.

“Aluminium scrap is energy in solid form. We simply cannot afford to export such a valuable and strategic resource with European industrial competitiveness now severely affected by the lack of affordable energy. The new plant will strengthen our recycling capacity in the European market, and save both energy and emissions,” says Hanne Simensen, Executive Vice President of Hydro Aluminium Metal.

Creating customer value and jobs while contributing to the circular economy

The Torija plant, strategically located in Spain’s Castilla-La Mancha region, will serve key Iberian industries, including the transport and automotive, building and construction, and energy sectors. With an annual production capacity of 120,000 tonnes of extrusion ingots, it will complement the offerings from Hydro’s nearby Azuqueca plant, bringing the combined capacity to more than 200,000 tonnes of low-carbon, recycled aluminium. Hydro plans to recruit 65 new employees well before the scheduled start of operation in 2026.

By applying advanced sorting technology and production processes, the new facility in Torija will be able to recycle up to 70,000 tonnes of post-consumer scrap annually and create specialized alloys with the highest share of post-consumer recycled content in the market. 

“Torija will be a flagship plant with full automotive capabilities, ideally located to serve Iberian and other European customers. Equally important, the plant will have ample access to locally sourced scrap. This will provide significant value for our customers, create jobs and contribute to the circular economy. It’s good for Castilla-La Mancha, it’s good for Spain and it’s good for Europe,” says Simensen.

Increased circularity requires a supporting policy framework 

Hydro has raised concerns about both the export of scrap from Europe and loopholes in the EU’s Carbon Border Adjustment Mechanism (CBAM), which threaten to undermine aluminium recycling in Europe.

“Our investment in the Torija plant signals our strong commitment to circularity in the aluminium value chain. However, for more projects like this to thrive, we need clear policy frameworks that provide long-term certainty and give incentives to invest. We need to close the CBAM scrap loophole, and in addition we need trade policy measures to reduce the export of aluminium scrap. I believe aligning policies and regulatory measures with the need for more circularity is crucial for boosting Europe’s industrial competitiveness,” says Simensen.