Hydro to Shut Down UK Birtley Extrusion Plant Amid Market Challenges

Hydro to Close Birtley Extrusion Plant as Market Conditions Tighten

Hydro, the Norway-based aluminum producer, has announced the closure of its Birtley extrusion plant in the United Kingdom by the end of May 2025. This move comes after a consultation process with employees and follows sustained market pressures on aluminum recycling and extrusion operations.

The Birtley facility, with two extrusion presses and an annual production capacity of around 12,000 metric tons, will transfer its production to Hydro’s Tibshelf and Cheltenham plants. Approximately 100 workers will be affected, though Hydro has offered relocation opportunities to its other UK sites and pledged support for those impacted.

Market Weakness Drives Strategic Consolidation

Hydro attributed the closure to challenging market conditions, particularly in its recycled aluminum and extrusion businesses. In its Q1 2025 earnings report, Hydro noted weak demand and tight scrap supply had compressed recycling margins. The company also reported reduced remelt activity across its Hydro Extrusions and Aluminum Metal Recycling divisions.

Despite these setbacks, Hydro President and CEO Eivind Kallevik emphasized the company’s integrated model and cost-efficient operations. “In a more unpredictable world, our integrated business model and strong cost position make Hydro more resilient,” he said.

This development highlights the tightening dynamics in the European aluminum recycling market. Companies with operations in multiple regions, like Hydro, must respond quickly to global price volatility, especially in the secondary aluminum sector.

Strategic Shift and Impact on UK Aluminum Industry

The closure of Birtley reflects a broader shift in the European aluminum extrusion landscape. As demand fluctuates and raw material sourcing becomes more complex, companies are consolidating operations to remain competitive. Hydro’s extrusion facilities, which focus on low-carbon and recycled aluminum products, are central to the company’s long-term strategy.

At SuperMetalPrice, we track key developments in the global aluminum and extrusion markets. Hydro’s move signals a recalibration in response to current economic and supply-chain conditions, especially in scrap-based aluminum production.