ATLANTA, Sept. 11, 2023 /PRNewswire/ -- Novelis Inc., a leading sustainable aluminum solutions provider, today announced that in early 2023 it signed a new anchor customer contract with aluminum can maker Ball Corporation in North America. Under the contract, Novelis will supply aluminum sheet to Ball can making plants in North America.
With this contract and other commitments, Novelis has secured all of the beverage can capacity from its new plant in Bay Minette, Ala., underscoring the strong demand for the company's high-recycled-content beverage can sheet. The new plant, expected to begin commissioning in 2025, will be the first fully integrated aluminum manufacturing plant built in the U.S. in nearly 40 years and will have an initial capacity of 600,000 tonnes of finished goods primarily for the North American beverage can and automotive markets.
"Securing contracts for beverage can production capacity at Bay Minette two years before the plant is expected to be completed demonstrates our customers' confidence in our ability to plan, construct and operate our new plant in Alabama," said Steve Fisher, president and CEO of Novelis. "We're proud to continue our partnership with Ball in such a meaningful way and look forward to bringing our new plant online in the next couple of years."
The agreement between Novelis and Ball advances both companies' sustainability commitments by including closed-loop recycling and joint efforts to improve beverage can recycling. Through closed-loop recycling programs, Novelis directly takes back the manufacturing scrap generated during the can-making process and recycles it into new can sheet, which is then made into new beverage cans. In addition to this continuous loop, Novelis recycles more than 82 billion used beverage cans per year into new aluminum for beverage packaging. These efforts result in lower-carbon products, as recycling aluminum requires only 5% of the energy used to make primary aluminum, resulting in 95% less carbon emissions.
"Novelis is a critical partner in helping Ball reach our carbon footprint reduction goals and achieving full circularity for aluminum beverage packaging," said Ron Lewis, senior vice president & chief operating officer, global beverage packaging, Ball Corporation. "Our longstanding relationship with Novelis continues to generate significant benefits for our companies, our customers, and the long-term health of our planet."
The new contract is an extension of a multi-decade partnership between Novelis and Ball, stemming from a mutual focus on sustainability and innovation. For example, as of 2022, Ball Aluminum Cup®, which is made exclusively from Novelis-supplied aluminum, is now composed of 90% recycled content, the highest recycled content rate of any beverage packaging in its category. This evolution builds on the Ball Aluminum Cup's infinite recyclability by lowering its carbon footprint, further positioning the product as a sustainable solution for packaging waste challenges.
"Novelis and Ball are like-minded companies committed to creating a truly circular economy for aluminum beverage packaging," said Greg Schlicht, senior vice president, global beverage packaging, Novelis. "Our long-term collaboration has brought innovative products to market and set a new standard for sustainability. We are excited to continue this partnership and to meet growing demand for environmentally friendly beverage packaging."
Novelis expects global demand for aluminum beverage can sheet to grow at a 3% compounded annual growth rate from 2022 to 2031. The demand growth is driven by consumer preference for more sustainable products and size variety, as well as more beverage types being packaged in cans, including water, energy drinks, soda, beer, wine, hard seltzers and ready-to-drink cocktails.
Novelis Inc. is driven by its purpose of shaping a sustainable world together. We are a global leader in the production of innovative aluminum products and solutions and the world's largest recycler of aluminum. Our ambition is to be the leading provider of low-carbon, sustainable aluminum solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage can and specialties industries throughout North America, Europe, Asia and South America. Novelis had net sales of $18.5 billion in fiscal year 2023. Novelis is a subsidiary of Hindalco Industries Limited, an industry leader in aluminum and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai. For more information, visit novelis.com.
About Novelis' Bay Minette Plant
Novelis' new, low-carbon facility in Bay Minette, Ala., will be the first fully integrated aluminum manufacturing and recycling plant built in the U.S. in nearly 40 years and is expected to create up to 1,000 new jobs. Boasting an initial capacity of 600,000 tonnes of finished goods for the North American can and automotive markets, it will be powered by renewable energy, use recycled water, and operate as a zero-waste facility. Additionally, Novelis is working toward a goal of achieving net carbon neutrality at Bay Minette. The plant is currently under construction and is expected to begin commissioning in 2025.
Statements made in this news release that describe Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include plans to begin commissioning the Bay Minette, Ala., plant in 2025 and the creation of approximately 1,000 new jobs in Bay Minette. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in the company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2023.
SOURCE Novelis Inc.