Novelis secures contract with Ball Corporation for new aluminum plant in Alabama
Novelis Inc., a sustainable aluminum solutions provider, has signed an anchor customer contract with aluminum can manufacturer Ball Corporation, effectively securing all of its beverage can capacity at its upcoming Bay Minette, Alabama, plant. The new facility, set to begin commissioning in 2025, is noteworthy for being the first fully integrated aluminum manufacturing plant to be built in the United States in nearly four decades. The plant will primarily serve the North American beverage can and automotive markets, boasting an initial capacity of 600,000 tonnes of finished goods.
Securing Future Capacity and Consumer Confidence
“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. The long-term contract between Novelis and Ball Corporation extends a multi-decade partnership centered on sustainability and innovation.
Commitment to Sustainability and Closed-Loop Recycling
Both Novelis and Ball Corporation are elevating their sustainability efforts through this new contract, which includes closed-loop recycling and collaborative initiatives to bolster beverage can recycling rates. Novelis directly reclaims manufacturing scrap during the can-making process and recycles it into new aluminum sheet. This process not only forms a continuous loop but also allows Novelis to recycle over 82 billion used beverage cans annually. “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.
Meeting Consumer Demand for Sustainable Beverage Packaging
With consumer preferences shifting towards more sustainable products, Novelis predicts a 3% compounded annual growth rate for global aluminum beverage can sheet demand from 2022 to 2031. The demand is spurred by an increasing variety of beverages being packaged in cans, from water and energy drinks to wine and ready-to-drink cocktails. “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.
A Focus on Innovation and Recycled Content
The partnership between Novelis and Ball also encompasses innovative products like the Ball Aluminum Cup, which now consists of 90% recycled content, setting a new benchmark for sustainability within the beverage packaging industry. The emphasis on high-recycled-content products underscores the companies’ mutual commitment to sustainability and positions them as leaders in tackling packaging waste challenges.