Hydro, a key player in the global aluminium industry, has entered a significant long-term contract with Sanvira Tech LLC, reinforcing its supply chain for aluminium production. This agreement, finalized in Oslo on November 27, marks a strategic move to secure carbon anodes, a critical component in aluminium smelting, from Sanvira’s facilities in Oman.
Eivind Kallevik, Executive Vice President for Hydro Aluminium Metal, highlighted the importance of this deal in a press release.
“Hydro fully depends on stable and diversified supplies of high quality carbon anodes to make a material that the world needs. We are confident that Sanvira will be a robust, resilient and cost-efficient long-term source of an essential raw material for Hydro’s aluminium smelters.”
The deal outlines an offtake period of eight years, with an option for extension, ensuring a steady supply of carbon anodes for Hydro’s operations. Significantly, the contract will cover up to 25% of the nearly 600,000 metric tons (approximately 661,387 US tons) of carbon anodes consumed annually by Hydro’s smelters in Norway.
Sanvira’s new anode plant in Oman, still under construction, is central to this agreement. The facility is expected to be operational by the first quarter of 2025. Following its completion, the plant will undergo qualification and performance testing, scheduled to begin in the second quarter of 2025, to meet Hydro’s stringent requirements.
This agreement is a testament to Hydro’s commitment to ensuring a reliable supply of key materials for aluminium production, highlighting the company’s strategic foresight in stabilizing its supply chain amidst global market fluctuations, the firm stated.
