Novelis Inc., the world's leading aluminium flat-rolled producer and recycler, has signed a new long-term contract with Coca-Cola Bottlers' Sales & Services Co (CCBSS), the contractual agent for Coca-Cola Co.'s authorised North American bottlers. Under this agreement, Novelis will provide Coca-Cola's official North American bottlers with aluminium can sheet for The Coca-Cola Company's family of famous brands.
This includes supplies from Novelis' factory in Bay Minette, Alabama, which is now under development and is set to open in 2025. Through the CCBSS and Novelis arrangement, Atlanta-based Coca-Cola North American Bottlers have agreed to purchase undisclosed aluminium can sheets over a multiyear period. According to Novelis, demand for aluminium beverage can sheet is expected to grow at a 3 per cent compounded annual growth rate from 2022 to 2031, driven by consumer preference for more sustainable products and size variety.
"This new long-term contract builds on a decades-long relationship between Novelis and the Coca-Cola system, and further strengthens Novelis' position as the leading provider of aluminum for beverage cans. This contract validates our investment in expanding rolling and recycling capacity in North America and solidifies a strong future for sustainable aluminum as the beverage packaging material of choice," said Novelis President and CEO Steve Fisher.
According to Novelis, the arrangement includes a closed-loop recycling agreement, emphasising both firms' commitment to sustainability. Novelis immediately takes back the manufacturing scrap created during the can-producing process, recycles it, and turns it into a fresh can sheet, which is subsequently turned into new beverage cans via closed-loop recycling programmes.
Novelis claims that in addition to this continuous loop, it recycles more than 80 billion discarded beverage cans each year into new aluminium for beverage packaging. According to the corporation, these efforts result in lower-carbon goods since recycling aluminium requires around 95 per cent less energy than producing raw aluminium, resulting in 95% fewer carbon emissions.
"The evolving role on behalf of The Coca-Cola Company and our bottlers is to build a resilient domestic supply chain, thus enabling sustainable long-term growth. We recognise Novelis as a leader in sustainability, committed to supporting our 2030 World Without Waste Targets," added Coca-Cola Chief Procurement Officer Dan Coe.
The bulk of the Bay Minette factory's capacity for beverage can sheets have already been contracted, according to Novelis, and the facility will be the first fully integrated aluminium production and recycling operation constructed in the United States in almost 40 years. According to the firm, the factory, powered by renewable energy, utilising recycled water, and being a zero-waste facility, would generate up to 1,000 new employees and have an initial capacity of 600,000 tonnes of finished products for the North American can and automobile industries.
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