Hydro and PADNOS announced the formation of a joint venture to enable more upcycling of post-consumer aluminium scrap. The joint venture will industrialize Hydro’s proprietary sorting technology, HySort, bringing this advanced aluminium sorting technology to the U.S.
The 50/50 joint venture Alusort LLC is established between Hydro and PADNOS, a Michigan-based leader in recycling and scrap management.
Together, the companies plan to install a Hysort sorting machine at PADNOS’ existing sorting hub in Grandville, Michigan. Production is expected to start in 2024. The capital investment for Hydro is estimated at around USD 4 million.
“Digging deeper into the scrap pile and returning more aluminium to the cycle not only contributes to reducing emissions and nature impact – it’s also good business. Alusort represents an exciting opportunity for both companies to strengthen our leading positions in recycling. With our state-of-the-art sorting technology, the joint venture can handle the most mixed and challenging scrap types that otherwise would have ended up in landfills. Instead, we bring it back to life as value-added, low-carbon products for the automotive, building and construction and other key aluminium end markets,” says President & CEO Hilde Merete Aasheim.
Utilizing state-of-the-art sorting technology, Alusort will sort up to 20,000 tonnes of aluminium scrap per year. PADNOS personnel will run the daily operations, with Hydro personnel providing technical support as well as oversight of the activities.
Alusort will mainly supply sorted aluminium scrap to Hydro’s recycling plants in Cassopolis, Michigan and Henderson, Kentucky, and potentially other Hydro facilities in the United States & Canada. Other metal fractions will be sold to third parties.
“At PADNOS, we look for the next generation of recycling in all materials we handle, from ferrous metals to plastics to aluminium. Collaboration and market demand play critical roles in innovation. Hydro is the perfect partner for us to take aluminium recycling to the next level with our Alusort joint venture,” says Jonathan Padnos, President & CEO of PADNOS.
Access to post-consumer scrap becomes increasingly important for aluminium recycling companies like Hydro in the United States. When cars, buildings or electronic equipment have reached their end-of-life, the materials used in these products can either end up in landfills or be put to good use through recycling. HySort technology enables recovery of specific aluminium alloys from these obsolete products, helping return that material back to the same or similar applications for a new useful life.