The Slovak aluminum plant Slovalco is set to potentially restart its primary aluminum production by the year's end if the government finalizes electricity price support.
Slovalco, a Slovak aluminum smelting plant co-owned by Norwegian Hydro and the financial group Penta, has signed a memorandum with the government to officially initiate the process of restoring primary aluminum production in Žiar nad Hronom. This development comes after recent discussions led by Prime Minister Fico regarding state support to revitalize the industry's troubled operation, which has faced significant hurdles since it shut down its smelting furnaces at the end of 2022 and early 2023.
During a recent visit to the plant, a mixture of operational and inactive facilities were observed, with the plant still able to produce aluminum from recycled material. Conversations with corporate executives highlighted the factory's significant role in the national energy consumption — at its peak, Slovalco accounted for about 10% of the electricity generated by Slovenské elektrárne. The consequences of its shutdown have been felt broadly across the Slovak economy, making the need for government intervention critical to restoring jobs and stabilizing energy consumption.
The signing of the memorandum signals potential optimism for hundreds of workers and the local economy which relies heavily on the plant’s operations. If the state aid for electricity prices is realized, Slovalco may recommence its main aluminum production which not only supports local employment but also strengthens Slovakia's position in the aluminum market. The implications of this restart could lead to a renewed phase of industrial activity in the region, enhancing both output and economic stability.
