You are here: Home » Companies » News
Business Standard

Birla's Hindalco Industries plans $2.5 billion US aluminium recycling mill

The new facility will increase Novelis's, unit of Hindalco, recycling capacity to 90 billion cans globally, from 74 billion currently

Topics
Hindalco Industries | Novelis | Kumar Mangalam Birla

Swansy Afonso & Joe Deaux | Bloomberg 

Kumar Mangalam Birla. (Photo: Bloomberg)
Kumar Mangalam Birla. (Photo: Bloomberg)

Inc. plans to build a $2.5 billion low-carbon aluminium and rolling plant in the US to cater to the growing demand for beverage can sheets and the automotive market.

The facility, which will be built in in Alabama, will have a capacity of 600,000 tons of finished goods a year initially, the unit of Ltd. said in a statement. Work at the site is under way and the company expects to begin operations by the middle of 2025, it said.

More than half the capacity will be used to meet the rising demand for aluminium beverage can sheets in North America, as consumers seek more sustainable packaging, the company said. The new facility will increase Novelis’s capacity to 90 billion cans globally, from 74 billion currently, it said.

“It’s really on the back of a resurgence of beverage cans as the most sustainable solution from a packaging standpoint,” Steve Fisher, the chief executive of Novelis, said in a phone interview. “You’re seeing it from our customers preferring more and more infinitely recyclable aluminium.”

North American can demand was effectively flat between 2010 and 2018, but Fisher said canmaking investments have totaled about $4 billion since then as consumers increasingly have ditched plastic for more sustainable packaging. That’s enough to produce some 38 billion new cans annually amid rapidly expanding shortages that have forced to air ship cans from Brazil, Saudia Arabia and Asia.

This will be billionaire Kumar Mangalam Birla’s Aditya Birla Group’s largest global greenfield expansion project and will take the group’s total investment in the US across businesses to over $14 billion, it said. The Mumbai-based company has been on an expansion spree buoyed by strong demand prospects and higher prices of the metal.

Hindalco said in March that it will spend as much as $7.2 billion to expand its aluminium business over the next five years, mainly across India and North America. Earlier this year, had announced an investment of $365 million to build a plant in Kentucky.

The new facility will aim to be net carbon neutral for the emissions generated by itself and for its energy consumption, according to the statement. It will also rely on railroad transportation, which can reduce logistics-related carbon emissions by up to 70% compared with road transport, the company said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, May 12 2022. 08:52 IST
RECOMMENDED FOR YOU
.