New Delhi, May 11 (PTI) Novelis Inc, a subsidiary of Hindalco Industries, on Wednesday said that it will pump in USD 2.5 billion (around Rs 19,000 crore) to set up a low-carbon recycling and rolling facility in the United States.

The highly-advanced plant will have an initial capacity to produce 600 kilo tonnes of finished aluminum goods per year.

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"Novelis Inc... will invest USD 2.5 billion to build a new low-carbon recycling and rolling plant in Bay Minette, Alabama, USA," the company said in a statement.

This is also the largest global greenfield expansion project of the Aditya Birla Group, and it will take the group's total investment in the US across businesses to over USD 14 billion (over Rs one lakh crore), said Kumar Mangalam Birla, Chairman of the Aditya Birla Group and member of Novelis board of directors.

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More than half of the capacity of the new plant will be used to serve growing demand for aluminum beverage can sheet in north America, which is driven by consumer preference for more sustainable packaging.

"Through this investment, we are making a demonstrative commitment to continue to grow alongside our customers and meet their needs for low-carbon, highly sustainable aluminum solutions," said Steve Fisher, president and CEO of Novelis Inc.

The company's decision to build a fully-integrated, greenfield recycling and rolling plant is backed by strong north American demand for flat-rolled, low-carbon aluminum from can makers and beverage companies. Aluminum beverage cans, bottles and cups are the models of sustainable packaging and the circular economy.

With an average 'can-to-can' life cycle of just a couple of months, a can that is recycled today can be back on store shelves in as little as 60 days.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)