Novelis takes a big step towards circular economy

Novelis Inc. is an industry torchbearer when it comes to sustainability, and specifically circular manufacturing. A subsidiary of Hindalco, the metals flagship of the Group, Novelis is a pioneer in developing low-carbon aluminium solutions. The company is now taking Aditya Birla Group's ESG vision a step further.

Novelis is currently the world's largest recycler of aluminium. It recycles 82 billion cans every year. Moreover, it has pioneered closed-loop production and supply chain relationships with some of the leading brands in the world in the beverage can and automotive industries.

As part of its sustainable growth strategy, the company has invested $50 million to build a recycling centre in South Korea. The state-of-the-art facility will have an annual casting capacity of 100,000 tonnes. While Novelis already operates Asia's largest aluminium recycling centre in Yeongju (North Gyeongsang Province), this new centre will increase its recycling capacity by more than 20% to 440,000 tonnes per year. The decision will also enhance its capability to process multiple types of aluminium scrap.

This centre will be built by Ulsan Aluminum — a joint venture between Novelis and Kobe Steel, and operations are expected to commence in 2024. In early 2022, Novelis announced a $365 million investment to build a recycling centre in Guthrie, Kentucky to serve its automotive customers.

The reduction in carbon emissions from the new facility in Korea is expected to cross 420,000 tonnes each year.

Recycling aluminium saves 95% of the energy as compared to producing primary aluminium from bauxite. Moreover, it can be infinitely recycled without losing any of its strength or durability, making it an excellent choice for use in beverage cans and other forms of packaging.

Thus, as the world leader in sustainable, low-carbon rolled aluminium solutions, Novelis is focused on accelerating the transition of the aluminium industry to a circular economy model through the increased use of recycled content in its products. “Doing so will reduce our carbon footprint – as well as that of our customers and industry as a whole – and lead us closer to realising our 2050 goal for carbon neutrality," says Sachin Satpute, President of Novelis Asia.

Novelis' approach to sustainable operations and specifically its circular manufacturing initiatives make it a pathbreaker for industry.