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Novelis to invest $2.5 billion in new rolling plant in the US



Facility will have initial capacity of 6 lakh tonnes per year of finished aluminium goods

Novelis Inc, a subsidiary of Aditya Birla Group company Hindalco Industries, will invest $2.5 billion (about ₹19,250 crore) to build a new low-carbon recycling and rolling plant in Alabama, US. The modern facility will have an initial capacity of 6 lakh tonnes per year of finished aluminium goods . The company expects to begin commissioning in mid-2025.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group and the Novelis Board of Directors, said, the company will continue to invest in each of the markets Novelis serves–from beverage can to automotive, aerospace and specialties – and in all geographies.

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 $14 billion, he said.

More than half the new facility’s capacity will be used to serve growing demand for aluminium beverage can sheet in North America, which is driven by consumer preference for more sustainable packaging.

The facility will be the first fully integrated aluminium mill built in the US in 40 years. It is expected to create up to 1,000 high-paying careers in modern manufacturing. In addition to the beverage can market, the facility will also serve the automotive market.

It will rely on railroad transportation, which can reduce logistics-related carbon emissions by up to 70 per cent compared to road transport. The plant will make significant use of advanced automation and digital technologies, including artificial intelligence, augmented reality and robotics.

Steve Fisher, President and CEO of Novelis Inc, said, the company is well-positioned to efficiently expand capacity above 6 lakh tonne at this facility in the future to capture the ongoing strong demand, he added.

Recycling 90 billion cans

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 60 days, said the company. With the addition of a new recycling centre 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.

John Murphy, Chief Financial Officer, the Coca-Cola Company said the announcement of this new facility by long time partner Novelis will benefit the Coca-Cola system, and help reduce impact on the environment.

Published on May 11, 2022

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