Novelis adds capacity to supply growing market for coffee capsules made of recycled aluminium

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Apr 21, 2022, 02:30 ET

Company invests more than $30 million in Ohle, Germany, facility to meet growing global food and packaging industry demand

ZURICH, April 21, 2022 /PRNewswire/ -- Novelis, the global leader in aluminium rolling and recycling, today announced it is investing more than $30 million to build a new continuous annealing line at its Plettenberg-Ohle, Germany, facility. The additional line will double the plant's capacity for aluminium used in the production of coffee capsules, a market that is growing in response to increased demand for sustainable packaging solutions.

Many coffee brands choose aluminium over plastic to produce long life, flavor-fresh coffee capsules. Aluminium offers unique barrier properties and protects the freshness and aromas of capsulated coffee from moisture, light and air better than other materials. In addition, aluminium is a perfect material for the circular economy and resource efficiency because it can be recycled again and again, without losing its properties.

Today, the starter material for most of the world's aluminium coffee capsules comes from Novelis' Ohle plant. This investment will further strengthen the company's leadership in high-recycled-content packaging. Expected to begin operations in spring 2024, construction preparations will commence upon receipt of final government approval.

"The investment demonstrates our commitment to serve as a trusted partner for our food and packaging industry customers and create more sustainable solutions for consumers," said Emilio Braghi, Executive Vice President and President, Novelis Europe. "Increasing the use of recycled aluminium helps us reduce the use of natural resources, strengthen the circular economy and thus limit climate change. Our sustainability commitments include a 30 percent carbon footprint reduction by 2026 and achieving carbon neutrality by 2050 or sooner, thereby helping our customers reach their sustainability goals as well."

Together with its partners along the value chain, Novelis is developing innovative, low-carbon aluminium solutions and creating recycling loops for production and end-of-life scrap. This enables the company to produce innovative alloys, such as those used in the production of coffee capsules made with more than 80 percent recycled aluminium - confirmed by an independent international certification body.

In Nachterstedt, Germany, Novelis operates the world's largest, most technologically advanced aluminium recycling center, with an annual capacity of 400,000 tons. The starting material for coffee capsules is cast in Nachterstedt from used aluminium and then processed in Ohle to meet capsule producers' most demanding product specifications.

About Novelis
Novelis Inc. is driven by its purpose of shaping a sustainable world together. We are a global leader in the production of innovative aluminium products and solutions and the world's largest recycler of aluminium. Our ambition is to be the leading provider of low-carbon, sustainable aluminium solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage can and specialties industries throughout North America, Europe, Asia and South America. Novelis had net sales of $12.3 billion in fiscal year 2021. Novelis is a subsidiary of Hindalco Industries Limited, an industry leader in aluminium and copper, and the metals flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai. For more information, visit novelis.com.

Forward-Looking Statements
Statements made in this news release that describe Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include plans to invest approximately $30 million and build a new continuous annealing line in Germany. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in the company's Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2021.

SOURCE Novelis