Mumbai The US arm of Hindalco Industries Ltd, the world’s largest aluminum rolling company, will invest $2.5 billion to build a new recycling and rolling plant in the US in the biggest greenfield expansion plan of the parent Aditya Birla Group.
Novelis Inc.’s facility in Alabama will have an initial annual capacity to produce 600 kilotons of finished aluminum goods and will be completed by FY26, the company said on Wednesday.
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The latest announcement takes the capex plans by Novelis to $3.4 billion, with four other new capex initiatives underway, two in the US and one each in South Korea and China.
The company has committed to invest $365 million to build a recycling plant in Kentucky, US, and a $375 million cold mill in Zhenjiang, China.
“This investment marks the beginning of another transformational growth phase for Novelis,” Aditya Birla Group Chairman Kumar Mangalam Birla said in a statement.
“We continue to invest in every market Novelis has to offer—from beverage cans to automotive, aerospace and specialties—and across geographies. This is also the Aditya Birla Group’s largest global greenfield expansion project and in the US. Will take the group’s total investment to a business of over $14 billion.”
More than half of the new facility’s capacity will be used to meet growing demand for aluminum beverage can sheets in North America, driven by consumer preference for more sustainable packaging, the statement said.
The company said the decision to build a recycling and rolling plant is supported by strong North American demand for flat-rolled, low-carbon aluminum from can makers and beverage companies. Aluminum beverage cans, bottles and cups are models of sustainable packaging and circular economy. Back on store shelves in at least 60 days.
“In addition, we are well positioned to expand capacity at this facility in the future – up from the 600kt announced today to capture the current strong demand for growing markets,” said Steve Fischer, President and CEO of Novelis. Our readiness to invest in the service is a perfect example of how we are fulfilling our company’s objective of shaping a sustainable world together.
The company said the facility will be the first fully integrated aluminum mill built in the US in 40 years. It is expected to create 1,000 high-paying jobs in modern manufacturing.
The company said the facility will be powered primarily by renewable energy, use recycled water and will be a zero-waste facility.
“It will also rely on rail transport, 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 “
The addition of a new recycling center for beverage cans will allow Novelis to recycle 90 billion cans globally, which is more than the 74 billion beverage cans the company currently recycles.
On Wednesday, Novelis also announced its financial results for the year ended March 31. The company’s profit quadrupled to $954 million.
“We achieved record full-year results and exceeded remarkable financial milestones for adjusted EBITDA and net income,” Fisher said in an effort to advance our business and industry toward a more circular economy. continues to focus on meeting the strong customer demand for reusable aluminum products.” said.