Novelis and Ardagh Metal Packaging Forge New Agreement for Aluminum Beverage Can Sheet Supply

January 30, 2024

Novelis, a leading sustainable aluminum solutions provider and global aluminum rolling and recycling leader, has inked a new contract with Ardagh Metal Packaging USA, a key player in sustainable aluminum beverage packaging solutions. Under the agreement, Novelis will serve as the supplier of aluminum beverage packaging sheet to Ardagh's metal production facilities located in North America.

This significant contract marks the third major agreement Novelis has secured in less than seven months, further solidifying its presence in the North American beverage packaging market. Steve Fisher, President and CEO of Novelis, emphasizes the strength of the beverage packaging market in the region, driven by consumer demand for more sustainable choices. He highlights the aluminum beverage can as a prime example of sustainable packaging, given its ease of recycling back into the same product.

The announcement coincides with Novelis' ongoing construction of a new rolling and recycling plant in Bay Minette, Ala. This facility, the first fully integrated aluminum plant built in the U.S. in nearly four decades, is poised to have an initial capacity of 600,000 tonnes of finished goods for the North American beverage packaging and automotive markets.

Oliver Graham, CEO of Ardagh Metal Packaging, expresses pride in the partnership with Novelis, emphasizing shared values of sustainability and innovation. He anticipates the new plant's commencement, supporting continued growth in their collaborative efforts.

Novelis foresees a 4% compounded annual growth rate in global demand for aluminum beverage packaging sheet between 2023 and 2031. This growth is attributed to consumer preferences for sustainability, size variety, and the expanding use of cans for various beverages such as water, energy drinks, soda, beer, wine, hard seltzers, and ready-to-drink cocktails.

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