Novelis builds US$50M aluminum recycling facility to meet Asian consumer demand

07 Nov 2022 --- Novelis is building a US$50 million aluminum recycling center in South Korea to increase its recycling capacity and process different types of aluminum scrap.

With an annual casting capacity of 100 kilotons of low-carbon sheet ingot, the center is expected to reduce Novelis’ carbon emissions by more than 420,000 metric tons yearly. The facility is planned to come online in 2024.

“As the world leader in sustainable, low-carbon rolled aluminum solutions, we are focused on accelerating the transition of the aluminum industry to a circular economy model through the increased use of recycled content in our products,” says Sachin Satpute, president of Novelis Asia.

“Doing so will reduce our carbon footprint – as well as that of our customers and industry as a whole – and lead us closer to realizing our 2050 goal for carbon neutrality.”

Boosting recycling capacity
Novelis, a leading sustainable aluminum solutions provider and the world leader in aluminum rolling and recycling, operates Asia’s largest aluminum recycling center in Yeongju, South Korea. It is now building the new recycling center to meet the long-term global demand for environmentally sustainable, low-carbon aluminum sheets for cans, automotive and high-end specialty products.

The addition of Ulsan Recycling Center will allow Novelis to increase its recycling capacity by more than 20% to 440 kilotons in Korea and to enhance its capability to process different types of aluminum scrap. This is the latest in a string of Novelis’ recent investments to increase its recycling capacity globally.

Aluminum beverage cans are one of the most environmentally sustainable packaging, asserts Novelis. Using recycled aluminum as an input material saves 95% of the energy used to produce primary aluminum from bauxite, asserts Novelis.

In addition, aluminum is infinitely recyclable, making it increasingly important as an environmentally sustainable material choice. Aluminum beverage cans are one of the most sustainable packaging as used cans can be recycled and made into new cans and back on store shelves in 60 days.

Novelis recycles 82 billion used beverage cans annually, with the Yeongju Recycling Center processing more than 18 billion of them.

Doomed European metal market?
Meanwhile, the EU is taking insufficient action on the metal industry’s crisis, according to trade association European Aluminum. The comments came shortly after the European Commission enforced several measures to help metal producers, who say they are facing a “life or death” moment as electricity prices soar beyond affordable levels.

The association is also concerned that trouble in the market, which is seeing many metal producers close down, will further open the doors to countries like China – who can take over the European market.

European metal industry associations have furthermore warned that the current energy crisis poses an “existential threat” to their future. They urged EU leaders to take immediate emergency action or accept “permanent deindustrialization.” Metal production is highly energy-intensive, and Russia’s decision to slash gas exports to Europe in the wake of the Ukraine war has sent prices soaring.

Edited by Natalie Schwertheim

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