Novelis to supply aluminium beverage can sheet to Ball
Image: Pixabay
Novelis Inc. has announced that in early 2023 it signed a new anchor customer contract with aluminium can maker Ball Corporation in North America. Under the contract, Novelis will supply aluminium sheet to Ball can making plants in North America.
With this contract and other commitments, Novelis has secured all of the beverage can capacity from its new plant in Bay Minette, Alabama. The new plant, expected to begin commissioning in 2025, will be the first fully integrated aluminium manufacturing plant built in the US in nearly 40 years and will have an initial capacity of 600,000 tonnes of finished goods primarily for the North American beverage can and automotive markets.
“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 agreement between Novelis and Ball advances both companies’ sustainability commitments. Through closed-loop recycling programmes, Novelis takes back the manufacturing scrap and recycles it into new can sheet, which is then made into new beverage cans. Novelis also recycles more than 82 billion used beverage cans per year into new aluminium for beverage packaging. These efforts result in in 95% less carbon emissions compared to making primary aluminium.
“Novelis is a critical partner in helping Ball reach our carbon footprint reduction goals and achieving full circularity for aluminium beverage packaging,” said Ron Lewis, senior vice president & chief operating officer, global beverage packaging, Ball Corporation.
The new contract is an extension of a multi-decade partnership between Novelis and Ball, stemming from a mutual focus on sustainability and innovation. For example, as of 2022, Ball Aluminum Cup®, which is made exclusively from Novelis-supplied aluminium, is now composed of 90% recycled content, the highest recycled content rate of any beverage packaging in its category.
Novelis expects global demand for aluminium beverage can sheet to grow at a 3% compounded annual growth rate from 2022 to 2031. The demand growth is driven by consumer preference for more sustainable products and size variety, as well as more beverage types being packaged in cans, including water, energy drinks, soda, beer, wine, hard seltzers and ready-to-drink cocktails.
