Novelis, the wholly-owned US unit of Aditya Birla Group company Hindalco, on Wednesday, said it will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA.

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The highly advanced facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year. Site work is underway now and the company expects to begin commissioning in mid-2025.

"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.

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"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," he said.

Birla said this will be 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.

More than half of the capacity of the new facility will be used to serve the growing demand for aluminum beverage can sheets in North America, which is driven by consumer preference for more sustainable packaging.

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The facility will be the first fully integrated aluminum mill built in the US in 40 years. It is expected to create up to 1,000 high-paying, advanced careers in modern manufacturing. 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% compared to road transport. The plant will make significant use of advanced automation and digital technologies, including artificial intelligence, augmented reality and robotics.

"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.

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"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," Fisher said.

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.

To support this, Novelis has been working to develop circular economies for aluminum through state and federal public policies, as well as through partnerships with customers and other stakeholders on new approaches that encourage and incentivize US consumers to recycle more often.

First Published:May 11, 2022 4:58 PM IST