Slovalco, a prominent aluminium producer in Slovakia, has announced the gradual restart of its aluminium furnaces after a three-year suspension. The company is set to reactivate 100 of its 226 furnaces at its smelter located in Žiar nad Hronom, with the first furnaces being heated as of Saturday, 28 August 2026. This restart is expected to provide an annual production capacity of 75,000 tonnes, significantly lower than the plant’s full capacity of 175,000 tonnes.
The decision to resume operations comes after a substantial investment of approximately €100 million and an agreement between Slovalco and the Slovak government aimed at enhancing support for energy-intensive industries. This agreement includes a notable increase in compensation for indirect costs associated with the EU’s emissions trading system, positioning Slovalco as the primary beneficiary of these measures.
Additionally, Slovalco has secured a 10-year electricity contract with the state-owned operator of the Gabčíkovo hydropower plant on the Danube, alongside additional supplies from Slovenské elektrárne. While the specific pricing details of the state contract remain undisclosed, the arrangement is expected to stabilise the company’s energy costs, which have been a significant factor in its previous production halt.
Jaroslav Haščák, co-founder of Penta Investments, which holds a 44.7 percent stake in Slovalco, emphasised that the support received is not a mere gift but a strategic investment that will ultimately benefit the state through taxes and social contributions. He highlighted the importance of aluminium as a strategic raw material for Europe, noting that domestic production reduces reliance on imports from countries with larger environmental footprints. Hydro, the Norwegian company that co-owns Slovalco, also asserts that the aluminium produced at this facility has significantly lower carbon emissions compared to the global average.
The restart of production marks a significant shift for Slovalco, which had ceased primary aluminium production in 2022 due to soaring electricity prices that rendered operations uneconomical, although the company continued its aluminium recycling activities. The renewed production efforts are expected to bolster the local economy and contribute to Slovakia’s industrial landscape, as the government seeks to support energy-intensive industries in a challenging economic environment.
