Norðurál potline returns to 95% production capacity
Wednesday 2nd September 2026 on 23:30 in
Iceland
Norðurál’s aluminium smelter at Grundartangi is operating at 95% capacity after repairs following multiple transformer failures, mbl.is reports. One of the plant’s two potlines was shut down after several transformers failed within a short period last autumn.
Norðurál CEO Gunnar Guðlaugsson said the company had managed to make a temporary repair, allowing it to restart the potline earlier than expected.
“We started around 20 April and are now completing the restart. We are still establishing stable operations on the potline, so we are at 95% capacity,” he said.
The repair is not permanent. Norðurál is installing two new transformers, which are expected to be commissioned in the coming weeks. Two additional transformer sets are due to arrive in September. Each set consists of two transformers.
Because the potline is operating again, the transformers can only be replaced one at a time. The company is replacing four transformer sets, a process that will continue into next year but is not expected to affect production.
Each potline requires four transformers to operate at full capacity, with one additional transformer kept as a spare. One transformer failed two years ago, and Norðurál had ordered a replacement. Two more then failed within a short period last autumn, leaving the company unable to carry out a full repair.
Guðlaugsson said the company had now stabilised the potline and hoped to reach full capacity within a few weeks. The temporary repair is being operated cautiously to avoid placing too much strain on it.
The replacement transformers are being bought from ABB and manufactured in China. The older transformers were also made by ABB, which Guðlaugsson described as one of the world’s largest and most respected transformer manufacturers and a company originally from Sweden.
He said high aluminium prices this year had provided higher revenue, but also meant that the lost production opportunity had been greater.
Employees from the potroom and other departments have taken part in the repair work, Guðlaugsson said. No employees have been laid off.