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Novelis to invest $2.5 bn in Aditya Birla's biggest greenfield expansion project

Novelis to invest $2.5 bn in Aditya Birla's biggest greenfield expansion project

The facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year, Novelis said in a statement.

The facility will be the first fully integrated aluminum mill built in the US in 40 years. The facility will be the first fully integrated aluminum mill built in the US in 40 years.

Aditya Birla group's Novelis Inc on Wednesday announced it will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA in order to meet demand for cans. This project will be largest global greenfield expansion project by Birla group.

The facility will have an initial 600 kilotonnes of finished aluminum goods capacity per year, the aluminum solutions provider company said in a statement.

“This investment marks the start of another transformational growth phase for Novelis,” expressed 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.”

Birla also added, "This is also 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 growing demand for aluminum beverage can sheet in North America, which is driven by consumer preference for more sustainable 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,” said Steve Fisher, President and CEO of Novelis Inc. “In addition, we are well-positioned to efficiently expand capacity at this facility in the future – above the 600 kt 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.”

Furthermore, the statement also added that 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 US in 40 years. It is expected to create up to 1,000 high-paying, advanced careers in modern manufacturing, it added.

The company also mentioned that 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 per cent compared to road transport. The plant will make significant use of advanced automation and digital technologies, including artificial intelligence, augmented reality and robotics.

“Aluminum cans are an important form of packaging that, when recycled, play a vital role in our overall efforts to reduce waste,” said John Murphy, Chief Financial Officer of The Coca-Cola Company. “The announcement of this new, low-carbon recycling and rolling facility by our longtime partners at Novelis will benefit the Coca-Cola system, our customers and consumers, while reducing impact on the environment," Murphy added.

Site work is underway 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, where aluminum is the fastest-growing material as automakers make plans to achieve their sustainability goals, it stated.