The highly advanced facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year.
Novelis Inc announced that it will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA.More than half of the capacity of the new facility will be used to serve growing demand for aluminum beverage can sheet in North America, which is driven by consumer preference for more sustainable packaging.
Novelis said the decision is backed by strong North American demand for flat-rolled, low-carbon aluminum from can makers and beverage companies. Aluminum beverage cans, bottles and cups are the models of sustainable packaging and the circular economy. With an average "can-to-can" lifecycle of just a couple of months, a can that is recycled today can be back on store shelves in as little as 60 days.
"This investment marks the start of another transformational growth phase for Novelis," said Kumar Mangalam Birla, chairman of the Aditya Birla Group and the Novelis board of directors. He added, "This is also the largest global greenfield expansion project of the Aditya Birla Group and will take the Group's total investment in the US across businesses to over $14bn."
The facility will be fully integrated aluminum mill and it will aim to be net carbon neutral for Scope 1 and 2, be powered primarily by renewable energy, use recycled water and be a zero-waste facility.
With the addition of a new recycling center for beverage cans, Novelis will soon be able to recycle 90 billion cans globally, up from the 74 billion used beverage cans the company currently recycles.
In addition to the beverage can market, the facility will also serve the automotive market, where aluminum is the fastest growing material as automakers make plans to achieve their sustainability goals.
More From This Section
Site work is under way now and the company expects to begin commissioning in mid-2025, Novelis said.
Acquired by Hindalco in 2007, US-based Novelis is the world leader in rolled aluminium products, delivering solutions for global applications, such as beverage cans, automobiles, architecture and consumer electronics.
Novelis is a subsidiary of Hindalco Industries, an industry leader in aluminum and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai.
Hindalco board will consider FY22 results & dividend on 26 May 2022. On a consolidated basis, net profit of Hindalco Industries rose 95.79% to Rs 3675 crore on 43.81% rise in net sales to Rs 50272 crore in Q3 December 2021 over Q3 December 2020.
Shares of Hindalco Industries ended almost flat at Rs 422.90 on the BSE.
Powered by Capital Market - Live News