Taking the North American FRP market by storm

Taking the North American FRP market by storm

Businesses

As a leading solutions-oriented manufacturer of aluminium, we have taken numerous steps to expand our value-added portfolio. As we continue to expand our presence in India’s downstream aluminium market, we are also investing in larger production and recycling capacities for the North American market via our wholly owned US subsidiary, Novelis.

Besides being the world’s largest aluminium recycler, Novelis also leads the world in flat-rolled products (FRPs) with an annual production capacity of over 4 million tonnes. Its hallmark closed-loop recycling system allows Novelis to serve the needs of multiple industries while maintaining a low carbon footprint.

To further expand its downstream capacity, Novelis acquired Aleris Corporation, an Ohio-based global supplier of FRPs, in 2020. This milestone $2.8 billion deal enabled Novelis to diversify into other premium market segments, most notably aerospace—owing to Aleris’ long-term supply contracts with leading aircraft suppliers such as Boeing, Airbus and Bombardier. This strategic acquisition has given a significant boost to Novelis’ leadership position in the industry and instantly positioned Hindalco as the world’s largest aluminium company.

More recently, Novelis has announced several big-ticket investments to further expand its recycling capacity. In 2022, for instance, it announced a $365 million investment to build a highly advanced automotive recycling centre in Guthrie, USA, and a $375 million investment to expand its rolling and recycling capabilities in Zhenjiang, China.

In May 2022, Novelis announced a stunning $2.5 billion investment to build a fully integrated rolling and recycling plant in Bay Minette, Alabama, with an initial annual production capacity of 600,000 tonnes. This the largest greenfield project of the Aditya Birla Group which will go a long way towards meeting the strong demand for aluminium beverage packaging and automotive solutions in North America.

With the global FRP aluminium consumption expected to touch 36.3 million tonnes by 2026, Novelis is all set to leverage this growing demand. Novelis’ beverage can segment—its core business—currently makes up 58% of its total FRP production. However, greater demand for sustainably produced packaging from beverage manufacturers and consumers will ensure that this segment will grow even further. And as a leading supplier of aluminium sheets to the world’s most premium automobile brands, Novelis’ Automotive Body Sheet segment stands to gain from the global transition to electric vehicles.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group and the Novelis Board of Directors, says, “Novelis has a track record of success in delivering customers the low-carbon, sustainable aluminium solutions they seek, and we will continue that storied history with this investment and others to come.”