Birla’s Hindalco Industries plans $2.5 billion aluminum recycling plant in the United States
Novelis Inc. plans to build a $2.5 billion low-carbon aluminum rolling and recycling plant in the United States to meet growing demand for beverage can foil and the automotive market.
The facility, which will be built in Alabama, will have an initial capacity of 600,000 tons of finished products per year, the Hindalco Industries Ltd unit said. in a press release. Work on the site is ongoing and the company expects to begin operations by mid-2025, he said.
More than half of the capacity will be used to meet growing demand for aluminum can foil in North America as consumers seek more sustainable packaging, the company said. The new facility will increase Novelis’ recycling capacity to 90 billion cans worldwide, up from 74 billion currently, he said.
“It’s really as a result of a resurgence of beverage cans as the most sustainable solution from a packaging perspective,” Novelis chief executive Steve Fisher said in a phone interview. “You see it with our customers who increasingly prefer infinitely recyclable aluminium.”
North American demand for cans was indeed flat between 2010 and 2018, but Fisher said investment in can manufacturing has totaled about $4 billion since then as consumers increasingly abandon plastic for packaging. more durable. That’s enough to produce some 38 billion new cans a year amid rapidly expanding shortages that have forced companies to air-ship cans from Brazil, Saudi Arabia and Asia.
It will be the largest global expansion project of billionaire Kumar Mangalam Birla’s Aditya Birla Group and will bring the group’s total investment in the United States across all businesses to more than $14 billion, he said. declared. The Mumbai-based company has been on a wave of expansion, buoyed by strong demand prospects and higher metal prices.
Hindalco said in March it would spend up to $7.2 billion to expand its aluminum business over the next five years, mostly in India and North America. Earlier this year, Novelis announced a $365 million investment to build a recycling plant in Kentucky.
The new facility will aim to be net carbon neutral for emissions generated by itself and for its energy consumption, according to the release. It will also rely on rail transport, which can reduce logistics-related carbon emissions by up to 70% compared to road transport, the company said.