Novelis Inc. will invest USD365 m to build a new recycling centre for automotive scrap in North America.
The recycling centre will be built adjacent to Novelis’ existing automotive finishing plant in Guthrie, Kentucky. “With an annual casting capacity of 240,000 t of sheet ingot, we expect the facility to reduce the company’s carbon emissions by more than 1m tpy,” Novelis said in a press statement.
Recycling centre equipped with cutting-edge technology
The centre will enable Novelis to grow its closed-loop-recycling programmes with more automotive customers in North America. Through closed-loop recycling, the company takes back the aluminium remaining after automotive parts are stamped from sheets and remakes it into the same product for new vehicle production. The centre will also be capable of processing aluminium from vehicles at the end of their lifecycle. “Through this investment, we will continue to increase the amount of recycled content in our products, reducing our CO2 emissions and moving us closer to carbon neutrality,” said president and CEO Steve Fisher.
The new recycling centre will be equipped with industry-leading processes and capabilities, including advanced shredding and sorting technology, as well as energy-efficient innovations to support the company’s sustainability goal to reduce energy intensity by 10 % by 2026. Groundbreaking is scheduled for early 2022, with commissioning expected in 2024. When fully operational, the expansion will add approximately 140 new jobs in Guthrie. This announcement is on the heels of Novelis’ October grand opening of the automotive finishing plant in Guthrie, which currently employs 150 people and will grow to 190 over the next two years.
Investment in recycling supports carbon-reduction targets
“We are excited about this new investment in Kentucky, which will help Novelis achieve its sustainability goals, as well as support the carbon-reduction targets of our automotive customers,” said Tom Boney, president of Novelis North America. “The Commonwealth of Kentucky has been a great business partner for many years and has a strong, highly skilled workforce to meet the growing need for high-strength, low-carbon aluminium.”
Novelis has a 37-year history of creating jobs in Kentucky and investing in local communities, employing 1,600 people in the state. In addition to its Guthrie automotive finishing facility, Novelis operates an aluminium beverage can recycling plant in Berea and the Logan Aluminum joint venture in Russellville.