Novelis to invest $2.5 billion in new plant in U.S.

Facility to be first fully integrated aluminum mill built in the U.S. in 40 years, will create up to 1,000 high-paying, advanced careers, says the company

Kumar Mangalam Birla

Novelis Inc. said it would invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama in the U.S.

The facility will have an initial capacity of 600 kilotonnes of finished aluminum goods per year and is slated for commissioning in mid-2025., according to the company, a subsidiary of Hindalco Industries and a part of the Aditya Birla Group.

“This investment marks the start of another transformational growth phase for Novelis,” said Kumar Mangalam Birla, Aditya Birla Group chairman 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,” Mr Birla 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 U.S. across businesses to over $14 billion,” he pointed out.

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, the company said.

“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,”

“We are well-positioned to efficiently expand capacity at this facility in the future to capture ongoing strong demand,” said Steve Fisher, president and CEO of Novelis Inc.

The 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, the company said.

"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 high-paying, advanced careers in modern manufacturing. It will also be the most sophisticated and sustainable of its kind," the company added.

With the addition of a new recycling centre for beverage cans, Novelis would soon be able to recycle 90 billion cans globally, up from the 74 billion used beverage cans the company currently recycles, it said.

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.