Novelis Inc. plans to invest $365 million to build a highly advanced recycling center for automotive in North America, built adjacent to its existing automotive finishing plant in Guthrie, Kentucky. The facility is expected to support the expansion of the company’s automotive closed-loop-recycling programs and reduce its carbon emissions by more than one million tons each year.
“Novelis aims to be the world’s leading provider of low-carbon, sustainable aluminum solutions that advance our business, industry, and society toward the benefits of a circular economy,” said Steve Fisher, president and CEO of Novelis, Inc. “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.”
With an annual casting capacity of 240,000 tons of sheet ingot, the new recycling center will be equipped with industry-leading processes and capabilities, including advanced shredding and sorting technology. In addition, it will feature energy-efficient innovations to support the company’s sustainability goal to reduce energy intensity by 10% by 2026.
The use of advanced technologies at the plant will enable the company to grow its closed-loop-recycling programs for more automotive customers in North America. Through closed-loop recycling, the company takes back the aluminum remaining after automotive parts are stamped from sheet and reprocesses it into the same product for new vehicle production. The center will also have the capability to process aluminum from vehicles at the end of their lifecycle.
When fully operational, the expansion will add approximately 140 new jobs in Guthrie. Novelis stated that it has a proud 37-year history of creating jobs in Kentucky and investing in local communities, employing 1,600 people in the state.
Recently, Novelis held the grand opening ceremony of its new automotive finishing plant in Guthrie, which currently employs 150 people and will grow to 190 people over the next two years. The company also operates an aluminum beverage can recycling plant in Berea and the Logan Aluminum joint venture in Russellville, both in Kentucky.
“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, executive vice president and 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 aluminum. We look forward to deepening our relationships with community leaders to ensure our facility has a lasting, beneficial impact in the region.”
Groundbreaking on the new recycling facility is scheduled for early 2022, with commissioning expected in 2024.