World's largest aluminium recycler Novelis to expand China plant
Reuters
Published Oct 28, 2021 09:10PM ET
By Pratima Desai
LONDON (Reuters) - The world's largest aluminium recycler, Novelis, will invest $375 million in its Zhenjiang operation in China to expand recycling and production for aluminium products used in the auto industry, the company said on Friday.
Metal recycling will play an important role in the energy transition, which includes a switch to electric vehicles from internal combustion engine cars.
Novelis, a subsidiary of India's Hindalco, expects to complete the expansion project by the middle of 2024.
"The investment will create a fully integrated supply chain for the automotive market in China between our Zhenjiang rolling and recycling facility and Changzhou automotive finishing plant," Novelis said.
Novelis, the world's largest supplier of automotive sheet, processes more than two million tonnes of aluminium scrap a year, resulting in an average of 61% recycled content in its products.
Recycling aluminum uses 95% less energy than producing primary aluminum.
"Recycling is a key component of our commitment to be carbon neutral by 2050 or sooner and we are committed to reducing our CO2 footprint by 30% by 2026," Novelis Chief Strategy and Sustainability Officer Pierre Labat told Reuters.
Labat said that 15% of Novelis's CO2 emissions are classed as Scope 1 and 2, with 85% in the Scope 3 category.
Scope 1 emissions are those from a company's direct operations, Scope 2 relates to power a company uses for its operations and Scope 3 emissions are from the products it sells.
"For us, the main thing will be to expand our recycling facilities to reduce our Scope 3 emissions; to recycle as much as we can instead of buying primary aluminium," Labat said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.