Rio Tinto Alcan has decided to spend USD 140 million (ISK 16 billion, EUR 102 million) on changes to the production process of aluminum in the smelter in Straumsvík in Hafnarfjördur.
The smelter in Straumsvík. Copyright: Icelandic Photo Agency.
Instead of slabs, billets will be made which is a more valuable product. These changes will create 150 man-years at the company, visir.is reports.
An announcement from Rio Tinto Alcan explained that with these changes the company will strengthen its position in markets in Northern Europe and improve its service to customers.
It is estimated for the billet production to begin in Straumsvík in 2012 and for the changes to have been fully carried through by 2014. Rio Tinto Alcan’s smelters in France and the UK will take over the slab production.
This project comes as an addition to a USD 347 million (ISK 39 billion, EUR 252 million) investment in the updating of equipment and a 20 percent increase in production capacity which was announced on September 23 following a new agreement with Landsvirkjun, the national power company.