Novelis Inc. plans to invest approximately $50 million to build a recycling center at its Ulsan Aluminum joint venture in South Korea. The expansion project will increase capacity to produce rolling ingot, as well as reduce carbon emissions.
“This latest capital investment in recycling is another example of our company purpose of ‘Shaping a Sustainable World Together’ in action,” said Pierre Labat, senior vice president, chief strategy, and sustainability officer, Novelis. “I am excited by the actions Novelis is taking to increase aluminum recycling worldwide and the benefits this will have for our customers and in making aluminum the preferred material for all the markets Novelis serves.”
Although the joint venture is 50% owned by Kobe Steel, Novelis will fully fund the Ulsan recycling project. The center will have the capacity to cast 100,000 tonnes of low-carbon rolling ingot annually. Once online, the recycling center is also expected to reduce the company’s carbon emissions by more than 420,000 tons each year.
“The establishment of the Ulsan Aluminum recycling center is an important investment to help us achieve our ambition of becoming the world’s leading provider of sustainable, low-carbon aluminum solutions,” said Sachin Satpute, executive vice president, Novelis, and president, Novelis Asia. “By increasing the use of recycled content, we are committed to reducing our carbon footprint as well as that of our customers and the broader industry, and accelerating aluminum’s transition to a fully circular economy.”
Novelis already operates a number of recycling operations around the world, including Asia’s largest aluminum recycling center in Yeongju, South Korea, as well as one of the world’s largest recycling centers in Nachterstedt, Germany. In recent years, the company has continued to grow this capacity in order to reduce emissions and meet demand. In January, the company also announced it would build a new U.S. recycling center in Guthrie, Kentucky — largely in support of the development of closed-loop automotive recycling programs.
The company’s new investment in new capacity at the Ulsan recycling center further ensures the company’s ability to meet the growing global demand for sustainable aluminum products. Construction of the center is expected to begin in October 2022, with commissioning to follow in early 2024.