ATLANTA
, Jan. 29, 2024 /PRNewswire/ -- Novelis Inc., a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, today announced that it has signed a new contract with Ardagh Metal Packaging USA Corp., a global supplier in sustainable aluminum beverage packaging solutions. Under the contract, Novelis will supply aluminum beverage packaging sheet to Ardagh's metal production facilities in North America.
This new contract is the third major one that Novelis has signed in less than seven months for the beverage packaging market in North America.
"Finalizing another meaningful customer agreement in North America is a testament to the strength of the beverage packaging market in the region, which is being driven by consumer desire for more sustainable choices," said Steve Fisher, president and CEO of Novelis. "Given its ability to be easily recycled back into the same product, the aluminum beverage can is a model of sustainable packaging."
This latest contract comes as Novelis is in the midst of building a new rolling and recycling plant in Bay Minette, Ala. The plant will be the first fully integrated aluminum plant built in the U.S. in nearly 40 years and will have an initial capacity of 600,000 tonnes of finished goods for the North American beverage packaging and automotive markets.
"As a leading global supplier of sustainable and infinitely recyclable aluminum beverage cans, we're proud of our partnership with Novelis, which shares our focus on sustainability and innovation," said Oliver Graham, CEO, Ardagh Metal Packaging. "Novelis has been part of our story since our founding, and we look forward to the new plant coming online and supporting our continued growth."
Novelis expects global demand for aluminum beverage packaging sheet to grow at a 4% compounded annual growth rate between 2023 and 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.
About Novelis
Novelis Inc. is driven by its purpose of shaping a sustainable world together. We are a global leader in the production of innovative aluminum products and solutions and the world's largest recycler of aluminum. Our ambition is to be the leading provider of low-carbon, sustainable aluminum solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage can and specialties industries throughout North America, Europe, Asia and South America. Novelis had net sales of $18.5 billion in fiscal year 2023. Novelis is a subsidiary of Hindalco Industries Limited, an industry leader in aluminum and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai. For more information, visit novelis.com.
Forward-Looking Statements
Statements made in this news release that describe Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include statements regarding our expectations related to the contract with Ardagh Metal Packaging, statements regarding our expectations for the beverage packaging market, including expected demand forecasts, plans to begin commissioning the Bay Minette, Ala., plant in 2025 and expectations regarding initial capacity of the plant. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in the company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2023, and the company's most recent Form 10-Q filed with the SEC for the quarter ended December 31, 2023.
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SOURCE Novelis Inc.
