Novelis Inc, a subsidiary of Hindalco Industries, on Wednesday said that it will pump in $2.5 billion (around Rs 19,000 crore) to set up low-carbon recycling and rolling facility in the United States.
The highly-advanced plant will have an initial capacity to produce 600 kilotonnes of finished aluminum goods per year.
"Novelis Inc... will invest $2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA," the company said in a statement.
This is also the largest global greenfield expansion project of the Aditya Birla Group, and it will take the group's total investment in the US across businesses to over $14 billion (over Rs one lakh crore), said Kumar Mangalam Birla, Chairman of the Aditya Birla Group and member of Novelis board of directors.
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More than half of the capacity of the new plant will be used to serve the growing demand for aluminum beverage can sheets in North America, which is driven by consumer preference for more sustainable packaging.
"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, president, and CEO of Novelis Inc.
The company's decision to build a fully-integrated, greenfield recycling and rolling plant is backed by strong North American demand for flat-rolled, low-carbon aluminum from can makers and beverage companies. Aluminum beverage cans, bottles, and cups are the models of sustainable packaging and the circular economy.
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With an average 'can-to-can' life cycle of just a couple of months, a can that is recycled today can be back on store shelves in as little as 60 days.
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