On Monday, January 29, Novelis Inc., the world-leading producer of flat-rolled aluminium products and the largest aluminium recycler, announced that it signed a new contract with Ardagh Metal Packaging USA Corp., under which the former would supply aluminium beverage packaging sheet.
As per the report, Novelis' aluminium beverage packaging sheet will be used by Ardagh's production facilities in North America. This is the third major contract signed by Novelis in less than seven months for the beverage packaging market in North America. It testifies that the beverage packaging market is growing strong in North America.
Steve Fisher, president and CEO of Novelis, said: "Finalising another meaningful customer agreement in North America is a testament to the strength of the beverage packaging market in the region, which is being driven by consumer desire for more sustainable choices. Given its ability to be easily recycled back into the same product, the aluminium beverage can is a model of sustainable packaging."
In response to North America's growing aluminium beverage packaging market, Novelis is building a new rolling and recycling plant in Bay Minette, Alabama. The plant will be the first fully integrated aluminium plant in the United States, with an initial capacity of 600,000 tonnes of finished goods for the North American beverage packaging and automotive markets.
Oliver Graham, CEO of Ardagh Metal Packaging, said: "As a leading global supplier of sustainable and infinitely recyclable aluminum beverage cans, we're proud of our partnership with Novelis, which shares our focus on sustainability and innovation. Novelis has been part of our story since our founding, and we look forward to the new plant coming online and supporting our continued growth."
Novelis projects global demand for aluminium beverage packaging sheets to grow at a 4 per cent CAGR between 2023 and 2031, acknowledging the shift of consumer preference to more sustainable packaging products in various sizes. Also, different types of beverages in aluminium cans are in demand, including water, energy drinks, soda, beer, wine, hard sheltzers, and ready-to-drink cocktails.
AL Circle's latest report titled "Global Aluminium Industry Outlook 2024" has rightly pointed out that the global demand for aluminium flat rolled products (including foil) is expected to grow by about 2.59 per cent in 2024, driven by the usage in the packaging sector. The growing shift to aluminium from other materials for packaging makes the aluminium packaging sector well-positioned for growth in 2024.
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