18.3 C
New York

Novelis to invest $2.5 bn in US in Birla Group

Published:

The plan is to build a new highly advanced low-carbon recycling and rolling plant in Bay Minette, Alabama, with initial 600 kilotonnes of finished aluminum goods capacity a year

Topics
Aditya Birla Novelis | United States

BS Reporter  |  Mumbai 

Aditya Birla group’s Novelis today announced it will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA.

The highly advanced facility by Hindalco subsidiary will have an initial 600 kilotonnes of finished aluminum goods capacity per year.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group and the Novelis Board of Directors said: “We continue to invest in each of the markets Novelis serves – from beverage can to automotive, aerospace and specialties – and in all geographies. Novelis has a track record of success in delivering customers the low-carbon, sustainable aluminum solutions they seek, and we will continue that storied history with this investment and others to come.”

“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,” Birla said.

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.

“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 aluminum solutions,” said Steve Fisher, President and CEO of Novelis Inc. “In addition, we are well-positioned to efficiently expand capacity at this facility in the future – above the 600 kt announced today – to capture ongoing strong demand. Our readiness to invest to serve growing markets is a perfect example of how we are delivering on our company purpose of shaping a sustainable world together.”

Novelis’ decision to build a fully integrated, greenfield recycling and rolling plant 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.

The facility will be the first fully integrated aluminum mill built in the U.S. in 40 years. It is expected to create up to 1,000 high-paying, advanced careers in modern manufacturing in USA.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Related articles

Recent articles

spot_img