US Novelis to build $53 mn aluminum recycle center in Korea

Novelis Inc., the world’s top aluminum recycler, is set to invest $53 million in another recycling and casting center in South Korea to meet the growing global demand for sustainable products of the metal by expanding low-carbon production.

Novelis said on Monday that it plans to start in October construction of the center at its aluminum joint venture with Japanese steelmaker Kobe Steel Ltd., in Ulsan, a coastal city about 310 kilometers southeast of Seoul.

The facility, which is expected to begin operations in 2024, is slated to raise Novelis’ total recycling capacity in the country to more than 24 billion aluminum cans a year, reducing the company’s carbon emission by more than 420,000 tons annually.

Novelis plans to produce 100,000 tons of low-carbon sheet ingot per year from the new plant. It has already been operating Asia's largest aluminum recycling center with an annual capacity of 320,000 tons in the country since 2012.

"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 Novelis Asia President Sachin Satpute in a statement.

Aluminum demand has been growing for eco-friendly packaging and steel substitutional materials since it can be indefinitely recycled. The reprocess of aluminum waste reduces energy consumption and greenhouse gases by 95%, compared to the production of aluminum from bauxite, a raw material.

Novelis, headquartered in Atlanta, Georgia, has been investing some $700 million for the last ten years to raise the use of recycled aluminum to 96%.

The company aims to cut carbon emissions by more than 30% from the current levels by 2026 with a target of carbon neutrality by 2050.

Write to Jung-hwan Hwang at jung@hankyung.com
Jongwoo Cheon edited this article.