Slovakia is returning to primary aluminium production after more than three years, with Slovalco beginning the gradual restart of its Ziar nad Hronom smelter in central Slovakia.
The first furnaces are being heated from Saturday, with 100 of the plant’s 226 furnaces due to be operating by the end of February. They will provide annual production capacity of 75,000 tons, compared with the plant’s full capacity of 175,000 tons.
The restart will cost about EUR 100 million and follows an agreement between Slovalco and the government that improves support for energy-intensive industry and secures long-term electricity supplies.
A key measure is a substantial increase in compensation paid to energy-intensive companies for indirect costs linked to the EU’s emissions trading system. Slovalco is expected to be the biggest beneficiary.
The company has also signed a 10-year electricity contract with the state-owned company that operates the Gabcikovo hydropower plant on the Danube and has secured additional supplies from Slovenske elektrarne. The price in the state contract has not been disclosed.
“It is not a gift that we are receiving,” said Jaroslav Hascak, co-founder of Penta, which owned 44.7 percent of Slovalco alongside Norway’s Hydro.
Hascak said the support would return money to the state through taxes and social contributions.
He also argued that aluminium is a strategic raw material for Europe and that producing it domestically reduces reliance on imports from countries with larger environmental footprints. Hydro similarly says Slovalco produces aluminium with significantly lower carbon emissions than the global average.
Hascak’s appearance alongside Prime Minister Robert Fico was also notable. Penta is a major player in Slovakia’s private healthcare sector, and Fico spent years attacking financial groups over their involvement in health care.
His stance has changed markedly. During a visit to a Penta hospital project in eastern Slovakia in February, Fico praised private investment in health care and acknowledged that his previous position had been wrong.
Slovalco stopped primary aluminium production in 2022 as soaring electricity prices made the operation uneconomic, although aluminium recycling continued.
A decision on restarting the remaining 126 furnaces will depend on future market conditions and access to competitively priced electricity. Slovalco’s majority owner, Hydro, says the current restart will support more than 200 jobs. (The Slovak Spectator)