Norsk Hydro ASA has announced a binding offer to acquire Rio Tinto’s Icelandic aluminium plant ISAL. Increasing the share of Norsk Hydro's production, based on renewable energy, to over 70% is one of the reasons for the acquisition.
ISAL's annual production is 210,000 metric tonnes of liquid metal and a total of 230,000 metric tons of extrusion ingot in a newly built casthouse. The production is fully powered by renewable energy. With the acquisition Norsk Hydro will increase its total capacity to 2.4 million metric tonnes in 2018.
According to Norsk Hydro's press release there are technical synergies: "The Icelandic plant runs on the same technology platform as Hydro’s Husnes plant in Norway, where Hydro recently announced a re-opening and technological upgrade of the plants’ second electrolysis line."
Iceland focuses on a favorable business environment, including low corporate tax, availability of land and green energy at competitive prices and efficiency within European legislative framework. New direct investment projects can apply for an investment agreement, ensuring generous regional incentives, including a corporate tax rate ceiling of only 15%.
Along with having one of the lowest corporate tax rate in Europe, Iceland has a highly educated workforce which is ranked among the highest in the world, offers competitively priced renewable energy with an advanced infrastructure making Iceland an ideal location for investors