Hindalco Industries Plans $7 Billion Capex for Major Expansion
Hindalco Industries, a leading metals company, has announced a capital expenditure plan of nearly $7 billion over the next three to five years, which includes significant investments at its US-based subsidiary, Novelis Inc. This ambitious investment cycle aims to bolster Hindalco’s strategic capacity expansions both in India and North America.
According to the company's annual report for the fiscal year 2023-24, Managing Director Satish Pai outlined that Novelis will see a capital investment of $4.9 billion, while Hindalco India will receive $2 billion in funding over the next few years.
One of the most substantial projects is the Bay Minette facility in North America, which will be built with a capital expenditure of $4.1 billion. This new facility is set to increase capacity for flat rolled products by 600,000 tonnes, specifically enhancing production of beverage cans and automotive-grade aluminium sheets. The region heavily depends on imports of can body sheets, primarily sourced from Asia, and this facility aims to meet the growing local demand. The Bay Minette facility is expected to be commissioned in the second half of 2026 and will take 18-24 months to reach full operational capacity.
The company has already secured long-term agreements with major clients, including Coca-Cola, Ball Corp., and Ardagh, for the supply of aluminium sheets. Additionally, Novelis is set to invest $365 million in building a recycling center for automotives in North America, which is anticipated to commence operations within the current fiscal year.
These investments are part of Novelis' strategy to expand its recycling capacities and optimize its portfolio to better meet market demands. The company emphasized that these expansions reinforce Novelis' commitment to enhancing its position as a leading provider of innovative solutions in the aluminium industry.
