Government wants to restart production at Slovalco

The government wants to restart production at the Slovalco aluminum smelter in Žiar nad Hronom, PM Robert Fico said. He aims to persuade the European Commission to grant a 4-5-year exemption from emission allowances. Given Fico’s poor standing in the EU, approval will be politically and procedurally difficult, making short‑term solutions such as subsidizing electricity prices or offering tax breaks more likely—though these also require EU approval. Slovalco, owned by Norsk Hydro (55%) and Penta (45%), halted production in late 2022 due to high electricity prices and low aluminum prices. Since then, electricity prices have fallen 70% and aluminum prices have risen 47%, but production has not resumed. With state support, operations could restart by year‑end. Staffing has dropped from 500 to 180, with only the recycling line running.

Unemployment in the Žiar nad Hronom district is below 4%, and it remains unclear whether similar support will be offered to other industrial firms.

(sme.sk, pravda.sk, dennikn.sk)