Novelis strikes major US supply deal with AMP

Novelis has secured a deal to supply aluminium coil to beverage can manufacturer Ardagh Metal Packaging (AMP) in North America.

The new contract is the third major one that Novelis has signed in less than seven months for the beverage can market in North America. In September last year, the company signed a long-term agreement to supply aluminium coil from its new mill at Bay Minette to canmaker Ball Corporation.

“Finalising another meaningful customer agreement in North America is a testament to the strength of the beverage packaging market in the region, which is being driven by consumer desire for more sustainable choices,” said Steve Fisher, chief executive of Novelis. “Given its ability to be easily recycled back into the same product, the aluminium beverage can is a model of sustainable packaging.”

The recycling and rolling mill being built in Alabama will be the first fully-integrated aluminium facility built in the US in nearly 40 years, said Novelis, and will have an initial yearly capacity of 600,000 tonnes of products for the North American canmaking and automotive markets.

“As a leading global supplier of sustainable and infinitely recyclable aluminium beverage cans, we’re proud of our partnership with Novelis, which shares our focus on sustainability and innovation,” said Oliver Graham, chief executive of AMP. “Novelis has been part of our story since our founding, and we look forward to the new plant coming online and supporting our continued growth.”

Novelis expects global demand for aluminium coil for beverage cans to grow at a yearly compound growth rate of 4% between 2023 and 2031. Novelis said the growth is driven by consumer preference for more sustainable products and size variety, as well as more beverage types being packaged in cans, including water, energy drinks, soda, beer, wine, hard seltzers and ready-to-drink cocktails.

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