On May 11, Novelis, a wholly-owned subsidiary of Aditya Birla Group firm Hindalco, announced a $2.5 billion investment in new low-carbon recycling and rolling factory in Bay Minette, Alabama. This state-of-the-art factory will be able to manufacture 600,000 tonnes of aluminium sheets per year. Site development is already underway, with commissioning expected to commence in mid-2025.
Can producers will receive around two-thirds of the production, according to the business, including Colorado's Ball Corp., which distributes empty cans to the beverage sector. The plant's remaining capacity will be used to produce aluminium sheet for the car sector.
The plant will be the first fully integrated aluminium mill developed in the United States in more than 40 years. It is intended to generate up to 1,000 high-paying sophisticated manufacturing jobs. For Scope 1 and 2, it will seek to be net carbon neutral, powered mostly by renewable energy, utilise recycled water, and be a zero-waste facility.
"This investment marks the start of another transformational growth phase for Novelis. 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,” said Mr Kumar Mangalam Birla, Chairman of the Aditya Birla Group and the Novelis Board of Directors.
According to Birla, this would be the Aditya Birla Group's largest worldwide greenfield expansion project, bringing the group's total investment in the US across businesses to over $14 billion. More than half of the new facility's capacity will be utilised to meet North America's expanding demand for aluminium beverage can sheets, which is being driven by customer demand for more environmentally friendly 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. In addition, we are well-positioned to efficiently expand capacity at this facility in the future – above the 600kt 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,” said Steve Fisher, President and CEO of Novelis Inc.
It will also rely on railroad transit, which has the potential to cut logistics-related carbon emissions by up to 70 per cent when compared to road transport. Advanced automation and digital technologies, such as artificial intelligence, augmented reality, and robots, will be used extensively in the factory. Novelis will soon be able to recycle 90 billion beverage cans worldwide, up from the current 74 billion. Novelis has been trying to establish circular economies for aluminium through state and federal public laws, as well as collaborations with customers and other stakeholders on novel techniques that encourage and incentive Americans to recycle more frequently.
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