Slovalco targets August 29 restart of aluminium smelter in Slovakia
Slovalco plans to restart primary aluminium production at Žiar nad Hronom after roughly three and a half years offline. The return will require about €100 million and depends on higher energy-cost compensation and a new electricity supply contract.
Production return planned for August 29
Slovalco is preparing to restart primary aluminium production at its Žiar nad Hronom smelter after roughly three and a half years offline, according to Slovak business newspaper Hospodárske noviny. Chief executive Milan Veselý said his ambition is to begin on August 29, the anniversary of the day in 1953 when the first aluminium was produced in Žiar nad Hronom.
The planned return would revive one of Slovakia’s largest industrial operations. Production curtailments and the gradual shutdown of the smelter’s furnaces began four years ago, while primary aluminium output has remained suspended for approximately three and a half years.
Keeping the facility in standby mode costs about €2 million per month, Veselý told Hospodárske noviny. Restarting production is expected to require approximately €100 million, making the project a substantial industrial commitment even before the plant begins purchasing the raw materials and electricity needed for regular operations.
Government talks changed owners’ plans
Slovalco is owned by Norsk Hydro and Penta, with Penta holding a minority stake. Veselý said the owners had been close to accepting that their operations in Slovakia were coming to an end before a meeting with government representatives in December.
Veselý and Norsk Hydro chief executive Eivind Kallevik met Prime Minister Robert Fico during that round of discussions. According to Veselý, Fico subsequently instructed Environment Minister Tomáš Taraba, Economy Minister Denisa Saková and Finance Minister Ladislav Kamenický to agree on a way forward. Difficult negotiations followed and ultimately produced a memorandum supporting the restart process.
The two main factors enabling production to resume are increased compensation for energy-intensive companies and an electricity supply agreement with state-owned hydropower operator Vodohospodárska výstavba. These measures address the cost of electricity, which remains one of the central constraints on primary aluminium production in Slovakia and across Europe.
Power supply remains the decisive constraint
A fully operating Slovalco smelter would require 2.5 terawatt-hours of electricity per year. Under the new agreement, the company will buy enough power from Vodohospodárska výstavba to cover approximately one-third of Slovalco’s capacity, Veselý said. The precise terms and price of the contract were not disclosed in the source material.
Vodohospodárska výstavba generates around 2.2 to 2.5 terawatt-hours annually, theoretically enough to supply the smelter at full production. Its output, however, depends on hydrological conditions. Veselý noted that drought can prevent the hydropower producer from generating sufficient electricity, a risk that has also affected Norway.
Slovalco must therefore manage a costly restart while remaining exposed to power availability, high electricity prices and competition from cheaper imported aluminium. The August 29 target marks the beginning of the process rather than a guaranteed return to full capacity. For Slovakia, the project would restore domestic primary aluminium output; for European metal buyers, its longer-term importance will depend on how quickly the plant can raise production and secure reliable electricity beyond the initial contracted volume.
