Novelis, a global pioneer in aluminum rolling and recycling and a leading developer of sustainable aluminum solutions, announced the launch of its new roll-forming development line on May 22, 2023.
Of all industries, the automobile sector, with the increasing number of electric vehicles, has been concentrating primarily on recycling and decarbonization, leading to a significant uptake of low-carbon aluminum. According to the BIS Research report, the global low-carbon aluminum market is projected to reach $119.97 billion by 2031 from $81.89 billion in 2022, growing at a CAGR of 4.3% during the forecast period 2022-2031.
And thus, Novelis' new development line will assist the company in meeting industry demand for a process capable of producing huge volumes of high-strength aluminum auto parts.
Here’s the Complete Story
Novelis Inc., a subsidiary of Hindalco Industries, a leading metals company within the Aditya Birla Group based in Mumbai, has committed a substantial investment of $2.5 billion toward the establishment of a cutting-edge low-carbon recycling and rolling plant in Bay Minette, Alabama, U.S.A. This state-of-the-art facility by Novelis will have an initial capacity to produce 600 kilotonnes of finished aluminum goods per year.
Mr. Kumar Mangalam Birla, the Chairman of the Aditya Birla Group and the Novelis Board of Directors, expressed that “This investment signifies the commencement of another significant growth phase for Novelis. The company remains committed to investing in all the markets it serves, ranging from beverage cans to automotive, aerospace, and specialty sectors, across various regions.”
Mr. Birla further highlighted that “This project is the largest greenfield expansion undertaking of the Aditya Birla Group, increasing the group's total investment in the United States across various businesses to exceed $14 billion.”
Low-Carbon Aluminum Rolling Plant Project
A significant portion of the new facility's capacity will be allocated to meet the increasing demand for aluminum beverage can sheets in North America. This surge in demand is primarily fueled by consumer preferences favoring environmentally sustainable packaging options.
Novelis' choice to construct a brand-new recycling and rolling plant stems from the robust demand in North America for flat-rolled, low-carbon aluminum, particularly from can manufacturers and beverage companies. Aluminum beverage cans, bottles, and cups exemplify sustainable packaging and contribute to the circular economy. These containers have a short "can-to-can" lifecycle, with the potential for a can to be recycled and reintroduced to store shelves within a mere 60 days.
The upcoming facility will be the first fully integrated aluminum mill to be constructed in the U.S. It is expected to generate around 1,000 high-paying jobs in advanced manufacturing. Distinguished by its sophistication and commitment to sustainability, the plant aims to achieve net carbon neutrality for Scope 1 and 2 emissions. It will predominantly rely on renewable energy sources, implement recycled water usage, and strive to be a zero-waste facility.
Conclusion
Novelis is expanding its recycling capabilities by establishing a new recycling center specifically dedicated to beverage cans. This development will enable the company to significantly increase its global recycling capacity from the current 74 billion used beverage cans to an impressive 90 billion cans. By utilizing railroad transportation, the plant aims to reduce carbon emissions associated with logistics by up to 70% compared to road transport.
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