Hindalco's US-based subsidiary Novelis to invest $2.5 billion in a new plant

Aluminium producer Hindalco’s US-based subsidiary Novelis will be investing $2.5 billion to build a new low-carbon aluminium recycling and rolling plant in Bay Minette, Alabama, the company said Wednesday.

The new facility will have an initial capacity of producing 600,000 tonnes of finished aluminium goods a year and will be the Aditya Birla Group’s biggest greenfield project overseas. Work at the site has begun and the company expects to begin commissioning the plant in mid-2025.

“This investment marks the start of another transformational growth phase for Novelis,” Kumar Mangalam Birla, the chairman of the Aditya Birla Group and Novelis said in a statement.

“We continue to invest in each of the markets Novelis serves – from beverage can to automotive, aerospace and specialties – and in all geographies,” he said.

More than half of the capacity of the new facility will be used to serve the growing demand for aluminium beverage can sheet in North America, driven by consumer preference for more sustainable packaging, the company said. The plant will also serve the automotive market.

The capacity of the plant could be expanded further in the future as and when the need arises, 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,” said Steve Fisher, the chief executive of Novelis said in a press statement.