Coke and Novelis in closed-loop US supply deal

Novelis has signed a new long-term contract to supply aluminium can sheet for Coca-Cola’s family of iconic brands, including output from Novelis’ plant in Bay Minette, Alabama which is currently under construction and expected to begin commissioning in 2025.

Through closed-loop recycling processes, Novelis directly takes back manufacturing scrap generated during the can-making process, recycles it and produces new can sheet which is then made into new beverage cans. In addition to this continuous loop, Novelis recycles more than 80 billion used beverage cans per year into new aluminium for beverage packaging.

‘Strong future’

Steve Fisher, President and CEO of Novelis. ‘This contract validates our investment in expanding rolling and recycling capacity in North America and solidifies a strong future for sustainable aluminium as the beverage packaging material of choice.’

Novelis expects demand for aluminium beverage can sheet to grow at a 3% compounded annual growth rate until 2031, driven by consumer preference for more sustainable products, as well as more beverages being packed in cans.

Novelis’ facility in Bay Minette will be the first fully integrated aluminium manufacturing and recycling plant built in the US in nearly 40 years. With an initial capacity of more than 500 000 tonnes of finished goods, it will be powered by renewable energy, use recycled water and operate as a zero-waste facility. Novelis is working toward a goal of achieving net carbon neutrality at Bay Minette.