Norsk Hydro ASA and Serenity Capital Pte. Ltd have signed an agreement that could lead to Serenity’s Norwegian subsidiary SilMag International AS restarting magnesium production at Herøya, Norway. 

Under the agreement, Hydro, which closed down its magnesium production there in 2002, will provide production assets and technology, as well as lease of land and other infrastructure at the Herøya Industrial Park, which is a fully owned subsidiary of Hydro.

The agreement is conditional on Serenity securing necessary financing to fund the project.

Hydro's history at Herøya started in 1928, when the company began producing fertilizer, and later PVC and magnesium.

The magnesium production ceased in 2002, while the fertilizer business was demerged in 2004, creating Yara as a stand-alone global fertilizer giant. With the divestment of Hydro Polymers in 2008, Hydro had no remaining industrial production at Herøya.