Hindalco Industries' wholly owned subsidiary Novelis will invest approximately $50 million to build a recycling centre with annual casting capacity of 100 kilotonnes of low-carbon sheet ingot at its Ulsan Aluminium joint venture in South Korea.
Fully funded by Novelis, the Ulsan Recycling Center will have an annual casting capacity of 100 kilotonnes of low-carbon sheet ingot. Once online, Novelis expectsthe recycling center to reduce the company's carbon emissions by more than 420,000 tons each year.
Novelis, which already operates Asia's largest aluminum recycling center in Yeongju, South Korea, as well as the world's largest aluminum recycling center in Nachterstedt, Germany, is making this investment in additional recycling capacity to meet the growing global demand for sustainable aluminum products.
In January, the company also announced it would build a new U.S. recycling center in Guthrie, Kentucky.
Using recycled aluminum as input material requires only 5% of the energy used to make primary aluminum, thus avoiding 95% of the carbon emissions associated with production.
Construction of the Ulsan Recycling Center is expected to begin in October, with commissioning expected in early 2024.
Sachin Satpute, executive vice president, Novelis, and president, Novelis Asia, said: The establishment of the Ulsan Aluminum Recycling Center is an important investment to help us achieve our ambition of becoming the world's leading provider of sustainable, low-carbon aluminum solutions.
By increasing the use of recycled content, we are committed to reducing our carbon footprint as well as that of our customers and the broader industry, and accelerating aluminum's transition to a fully circular economy.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, and a major copper player. It is also one of Asia's largest producers of primary aluminium.
The company reported a 96% jump in consolidated net profit to Rs 3,675 crore in Q3 FY22 from Rs 1,877 crore reported in Q3 FY21. Consolidated revenue from operations grew by 44% to Rs 50,272 crore in Q3 FY22 from Rs 34,958 crore posted in Q3 FY21.
The scrip shed 0.31% to currently trade at Rs 510.35 on the BSE.
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