Hindalco subsidiary signs agreement with the US-based Ball Corporation for the supply of aluminum beverage can sheets

Earlier this year, Hindalco Industries' subsidiary Novelis Inc. inked a long-term agreement with Ball Corporation for the supply of aluminum beverage can sheets.

By the terms of the agreement, Novelis will supply aluminum sheets to Ball Corporation's North American can manufacturing facilities, Hindalco reported in a filing to the exchanges on Monday.

“Novelis has secured all of the beverage can capacity from its new plant in Bay Minette, Alabama, underscoring the strong demand for the company’s high-recycled-content beverage can sheet,” Hindalco said.

Additionally, this will be the first fully integrated aluminum production facility developed in the US in almost 40 years, with an initial capacity of 6 lakh tonnes of finished goods, primarily for the North American beverage can and automobile sectors.

The agreement advances both companies' commitment to sustainability and their teamwork in enhancing beverage can recycling, according to the filing.

Novelis expects that from 2022 to 2031, the worldwide market for beverage can sheets will expand at a compound annual growth rate of 3%.

In addition to new beverage varieties being packed in cans, such as water, energy drinks, soda, beer, wine, hard seltzers, and ready-to-drink cocktails, the demand will increase due to customer preference for more sustainable products and size variety.