Delays could jeopardize Kokkola’s €4.5 billion aluminium plant
Wednesday 11th November 2026 on 17:31 in
Finland
Delays could put a planned €4.5 billion aluminium plant in Kokkola at risk as electricity prices, construction costs and permitting shape the project, Yle reports. Arctial Group expects to decide whether to build the plant in late 2027 or early 2028.
All three conditions must be favourable before the company’s owners make a final investment decision. Arctial board chair Pekka Vauramo said the company would spend hundreds of millions of euros on planning before that decision.
Electricity is a particular concern. New data centre projects are competing for the same power and grid capacity, and their rapid growth could also drive up construction costs, Vauramo said.
Electricity would be the plant’s second-largest cost after bauxite. The facility, planned for Kokkola and Kruunupyy, would use about 10 per cent of Finland’s current electricity consumption. Vauramo said production in the process industry has little flexibility to adjust to electricity prices.
Although electricity is among the cheapest in Europe in Finland, Vauramo said industrial support in Germany and France could put the project at a disadvantage. Finland’s electrification support is due to end at the end of the year, while support in Germany and France is on a scale comparable to current electricity prices.
The plant also needs a legally binding environmental permit. Arctial has not yet submitted its permit application, and possible appeals could delay the project. The company has received EU status as a strategically important project, which gives its permit process priority and can also help in discussions with financiers.
The Finnish state is set to provide €150 million in tax relief, phased over 10 years. Around 100 people are working on the plant’s design. A preliminary study completed earlier this year supported continuing with more detailed planning, and the company is now preparing detailed plans, completing profitability calculations and securing energy supplies.
Vauramo said the project was about one-third of the way through its development. Before an investment decision, the company plans to finalise arrangements including construction contracts.