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Novelis is to build an aluminium recycling center for automotive customers in North America, which will reduce the company’s carbon emissions by more than 1 million tonnes per year and enlarge its closed-loop recycling programs, it has said.
The $365 million investment will create casting capacity for 240,000 tpy of aluminium sheet ingot. It will be built adjacent to Novelis’ existing automotive finishing plant in Guthrie in the US state of Kentucky, the company said on Tuesday January 11.
Ground-breaking to commence construction was scheduled for early this year, with commissioning expected in 2024.
Steve Fisher, president and chief executive officer of Novelis, said that the investment would allow the company to continue to increase the amount of recycled content in its products, reduce its carbon emissions and move it closer to carbon neutrality.
“Through closed-loop recycling, the company takes back the aluminium remaining after automotive parts are stamped from sheets, and remakes it into similar product for new vehicle production,” the company said.
“The center will also have the capability to process aluminium from vehicles at the end of their lifecycle. Using recycled aluminium as input material requires only 5% of the energy used to make primary aluminium, thus avoiding 95% of the carbon emissions associated with production,” it added.
Novelis hoped to reduce its energy intensity by 10% by 2026. It is the world’s largest supplier of aluminium sheet to the automotive industry, with a global market share of roughly 50%.
The company opened its automotive finishing plant in Guthrie in October last year. Also in Kentucky, it operates an aluminium beverage can recycling plant in Berea and the Logan Aluminum joint venture in Russellville.
Novelis is based in Atlanta, in the US state of Georgia, and is a subsidiary of aluminium and copper producer Hindalco Industries, which is, in turn, part of the Aditya Birla Group.