Hydro closes two compression plants in the United States: Capacity optimization and regional layout reshaping
June 18, 2026
The Norwegian company Hydro has decided to shut down its two factories in the North American extrusion business in the industrial city of California and in the city of Darien, Louisiana. The closure is expected to be completed within 2027.
The California factory will cease operations on January 1, 2027, while the Delhi factory will close on April 1 and then enter the final stage. Approximately 350 employees of the two factories will be affected.
Hydro stated that the two factories are experiencing low capacity utilization rates and require significant capital investment to meet operational standards.
Closing these facilities is aimed at enhancing Hydro's long-term position in the US market by optimizing the operational layout and concentrating investments in the most influential areas.
To ensure the continuity of the client's business, the re-equipping work for transferring production to other facilities of Hydro in North America has been initiated. It is expected to be completed in the first quarter of 2027.
This decision reflects the competitive pressures faced by the North American aluminum processing industry - overcapacity, rising energy costs, and price competition with imported products.
Hydro's capacity integration initiative indicates that even in the context of a generally tight global aluminum market, regional structural adjustments are still ongoing.
