Novelis Inc., a prominent provider of sustainable aluminum solutions, has announced the signing of a new anchor customer contract with Ball Corporation, a leading aluminum can manufacturer in North America. This agreement, initiated in early 2023, establishes Novelis as the supplier of aluminum sheet material to Ball's can manufacturing facilities in North America.

In addition to this contract and other prior commitments, Novelis has secured the entire beverage can capacity from its upcoming plant in Bay Minette, Alabama. This underlines the strong demand for Novelis' high-recycled-content beverage can sheet. The new Bay Minette plant, anticipated to commence commissioning in 2025, will be the first fully integrated aluminum manufacturing facility constructed in the United States in nearly four decades. It will have an initial capacity of 600,000 tonnes of finished goods, primarily serving the North American beverage can and automotive markets.

Steve Fisher, President and CEO of Novelis, remarked, "Securing contracts for beverage can production capacity at Bay Minette two years ahead of the plant's expected completion demonstrates our customers' confidence in our ability to plan, construct, and operate our new facility in Alabama. We're proud to continue our partnership with Ball in such a meaningful way and look forward to bringing our new plant online in the next couple of years."

The collaboration between Novelis and Ball aligns with their shared commitment to sustainability and includes initiatives like closed-loop recycling and joint efforts to enhance beverage can recycling. Closed-loop recycling programs involve Novelis reclaiming the manufacturing scrap generated during the can-making process and recycling it into new can sheet, which is then used to produce new beverage cans. Beyond this continuous loop, Novelis recycles over 82 billion used beverage cans annually into new aluminum for beverage packaging. These initiatives lead to lower-carbon products, as recycling aluminum consumes only 5% of the energy required for primary aluminum production, resulting in a 95% reduction in carbon emissions.

Ron Lewis, Senior Vice President & Chief Operating Officer of Global Beverage Packaging at Ball Corporation, stated, "Novelis is a critical partner in helping Ball reach our carbon footprint reduction goals and achieving full circularity for aluminum beverage packaging. Our longstanding relationship with Novelis continues to generate significant benefits for our companies, our customers, and the long-term health of our planet."

This new contract extends a multi-decade partnership between Novelis and Ball, rooted in their shared focus on sustainability and innovation. For instance, by 2022, the Ball Aluminum Cup®, made exclusively from Novelis-supplied aluminum, contains 90% recycled content, the highest rate of recycled content among beverage packaging in its category. This enhancement builds upon the Ball Aluminum Cup's already infinite recyclability by further reducing its carbon footprint, positioning it as a sustainable solution for packaging waste challenges.

Greg Schlicht, Senior Vice President of Global Beverage Packaging at Novelis, added, "Novelis and Ball are like-minded companies committed to creating a truly circular economy for aluminum beverage packaging. Our long-term collaboration has brought innovative products to market and set a new standard for sustainability. We are excited to continue this partnership and to meet growing demand for environmentally friendly beverage packaging."

Novelis anticipates a 3% compounded annual growth rate in global demand for aluminum beverage can sheet from 2022 to 2031. This demand surge is driven by consumer preferences for sustainable products, diverse packaging sizes, and an increasing range of beverage types being packaged in cans, including water, energy drinks, soda, beer, wine, hard seltzers, and ready-to-drink cocktails.

 

Source:prnewswire.com

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