Novelis Inc, a wholly-owned subsidiary of Hindalco, will invest $365 million in building a highly advanced recycling center for automotive in the US, the company said in a press release.
The firm believes that the new facility, expected to come up next to its existing automotive finishing plant in Kentucky, will help cut carbon emissions by more than one million tonnes each year.
The new facility will help grow the closed-loop recycling program and expand the automotive customers based in North America, the company said. In closed-loop recycling, the aluminum from automobile parts is recycled to produce the same product for new vehicles. The facility will also have the capacity to process aluminum from vehicles at the end of their lifecycle that will help reduce the carbon footprint.
Once the facility becomes fully functional, it is likely to generate 140 new jobs in Kentucky, the firm said.
“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.”