Novelis Inc., an aluminum solutions provider and leader in aluminum rolling and recycling, will invest $2.5 billion to build a low-carbon recycling and rolling plant in Bay Minette, Alabama. The facility will have an initial 600 kilotonnes of finished aluminum goods capacity annually.
“This investment marks the start of another transformational growth phase for Novelis,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group and the Novelis board of directors. “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.”
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.
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 advanced careers in modern manufacturing. It will also be the most sophisticated and sustainable of its kind. It will aim to be net carbon neutral for Scope 1 and 2, be powered primarily by renewable energy, use recycled water and be a zero waste facility. It will also rely on railroad transportation, which can reduce logistics related carbon emissions by up to 70 percent compared to road transport. The plant will make significant use of advanced automation and digital technologies, including artificial intelligence, augmented reality and robotics.
With the addition of a new recycling center 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.
Site work is under way now and the company expects to begin commissioning in mid 2025.
In addition to the beverage can market, the facility will also serve the automotive market.
Published in the June 2022 Edition