Skanska has secured a contract worth approximately NOK 1.1 billion (€95 million) from Hydro to construct a new aluminium wire production facility at the company’s existing industrial site in Karmøy, Norway. The contract will be recorded in Skanska’s order intake during the third quarter of 2026.

The project represents a significant investment in Hydro’s downstream aluminium production capabilities and is designed to strengthen the company’s capacity to supply aluminium wire for applications including power transmission, electrical infrastructure and industrial manufacturing.

The new facility will comprise a production hall housing advanced melting furnaces and a modern aluminium wire production line, together with dedicated buildings for storage, maintenance operations and office functions. The scope of work also includes extensive foundation construction, mechanical and electrical installations, utility systems, and integration with the existing infrastructure at Hydro’s Karmøy industrial complex.

Once operational, the production line will have an annual capacity of approximately 110,000 tonnes of aluminium wire, enhancing Hydro’s manufacturing capabilities while supporting growing demand for low-carbon aluminium products.

The contract follows a collaborative interaction phase during which Hydro and Skanska jointly developed and optimised the project before construction commenced.

Pål Aglen, Executive Vice President for Construction at Skanska Norway, described the project as an important milestone and highlighted the close cooperation between the two companies in delivering complex industrial facilities.