The Norwegian aluminium industry: Cornerstone companies generating billions in value creation

Cornerstone companies generating billions in value creation

September 2023: The Norwegian aluminium industry has roots dating back almost 120 years and has developed an industrial culture, technology, and expertise that exist in very few other places in the world. On behalf of Speira, Alcoa, and Hydro, Economics Norway (leading Norwegian analysis company) has published a report on the local effects of Norwegian aluminium production. 

Today, Norway is Europe's largest producer of primary aluminium and the largest single supplier of aluminium to the EU, ahead of China, Turkey, and Russia. With its facilities at Holmestrand, Karmøy, Rød, and Raudsand, Speira is one of the six main suppliers of aluminium in Norway.

Economics Norway calculated more than 6,000 full-time equivalent jobs and NOK 35 billion in revenue in 2021 generated by the Norwegian aluminium industry. This income is made up of value creation in the six suppliers, where Speira is a significant provider, and effects that arise when employees in the aluminium industry and their subcontractors purchase Norwegian-produced goods and services. Furthermore, this led to NOK 3.8 billions in tax income for the Norwegian government.

The Norwegian aluminium industry also represents a distinct area of expertise developed in collaboration with technology environments and other supplier companies. The further development of such knowledge environments is crucial for the industry's long-term competitiveness and is maintained through research and development, both within the industry itself and in collaboration with research institutions at home and abroad.

Aluminium is a versatile metal and is expected to play a significant role in the green transition. The use of aluminium in transportation, airplanes, cars, and trains significantly reduces energy consumption and efficiently conducts energy, for instance, in underwater cables. The EU anticipates a 40 per cent increase in demand for aluminium by 2030. If market shares are maintained, and the EU's growth ambitions materialise, this could result in a production increase of nearly 700,000 tonnes of aluminium for export from Norway, which again would lead to increased value creation and employment in the industry.

Employment stemming directly, indirectly, and through consumption effects from the aluminium industry amounted to approximately 20,000 full-time jobs in 2021. The ripple effects are spread throughout much of the country but are particularly significant for the industry's host municipalities and their neighbouring municipalities. Nearly half of the country's municipalities, 175 in total, have more than ten full-time jobs directly or indirectly linked to the industry.

The Norwegian aluminium industry has the potential to become even more important and provide income and jobs in many Norwegian communities in the years to come. Read the full report here (in Norwegian only).

FACT BOX

In 2021, the Norwegian aluminium industry generated:

• NOK 35 billion in revenue
• NOK 3.8 billion in tax income for the Norwegian government
• More than 6,000 full-time jobs in the six main Norwegian suppliers
• Around 20,000 full-time jobs stemming directly, indirectly, and through consumption effects from the industry