Novelis Invests $2.5 Billion to Construct Low-Carbon Aluminium Recycling Plant
Novelis, a global leader in sustainable aluminium solutions and aluminium rolling and recycling, has announced a $2.5 billion investment in new low-carbon recycling and rolling factory in Bay Minette, Alabama. The factory will have an initial capacity of 600 kilotonnes of finished aluminium goods capacity per year.
The new facility will render North America's growing demand for aluminium beverage can sheets, which is being driven by customer demand for more environmentally friendly packaging.
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said:
"This investment marks the start of another transformational growth phase for Novelis. It 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."
Steve Fisher, President and CEO of Novelis Inc, said:
"Through this investment, we are making a demonstrative commitment to continue to grow alongside our customers and meet their needs for low-carbon, highly sustainable aluminium solutions."
Strong North American demand for flat-rolled, low-carbon aluminium from can makers and beverage firms prompted Novelis to install a fully integrated, greenfield recycling and rolling operation. Models of sustainable packaging and the circular economy include aluminium beverage cans, bottles, and cups. A can that is recycled today might be back on shop shelves in as little as 60 days.
The plant will be the first fully integrated aluminium mill in the United States in 40 years. It is intended to generate up to 1,000 high-paying modern manufacturing jobs. It will also be the most advanced and long-lasting of its kind.
It will also rely on railroad transit, which has the potential to reduce logistics-related carbon emissions by up to 70% when compared to road transport. Advanced automation and digital technologies, such as artificial intelligence, augmented reality, and robotics, will be used extensively in the plant.
Novelis will soon be able to recycle 90 billion beverage cans worldwide, up from the current 74 billion. Novelis has been trying to establish circular economies for aluminium through state and federal regulations, as well as partnerships with customers and other stakeholders on novel techniques that encourage Americans to recycle more frequently.
John Murphy, Chief Financial Officer of The Coca-Cola Company, said:
"Aluminum cans are an important form of packaging that, when recycled, play a vital role in our overall efforts to reduce waste."
The factory will not only serve the beverage can business, but also the car market, where aluminium is the fastest-growing material as automakers work to meet their sustainability targets.