Leading sustainable aluminium solutions provider Novelis has signed a new contract with Ardagh Metal Packaging (AMP) USA, a global supplier of sustainable aluminium beverage packaging.

Under the agreement, Novelis will supply its aluminium beverage packaging sheets to Ardagh’s metal production facilities in North America.

In a significant move, Novelis has secured its third major contract in less than seven months for the North American beverage packaging market.

This emphasises the robust growth of the beverage packaging sector in the region, primarily propelled by consumer demand for sustainable options.

Strategic partnership amidst new plant construction

This development coincides with Novelis’ ongoing construction of its new rolling and recycling plant in Bay Minette, Alabama.

Marked as the first fully integrated aluminium plant built in the US in almost four decades, the facility is set to have an initial capacity of 600,000 tonnes of finished goods.

This production capacity will cater to the North American beverage packaging and car markets.

As Steve Fisher, president and CEO of Novelis, notes: “Finalising another meaningful customer agreement in North America is a testament to the strength of the beverage packaging market in the region, which is being driven by consumer desire for more sustainable choices.”

Global demand surge for aluminium beverage packaging

Novelis anticipates a 4% compounded annual growth rate in global demand for aluminium beverage packaging sheets between 2023 and 2031.

This surge is attributed to the increasing consumer inclination towards sustainable products, varied packaging sizes, and a growing range of beverages being packaged in cans, including water, energy drinks, soda, beer, wine, hard seltzers, and ready-to-drink cocktails.

Oliver Graham, CEO of AMP, expresses pride in the partnership with Novelis, stating:

“As a leading global supplier of sustainable and infinitely recyclable aluminium beverage cans, we’re proud of our partnership with Novelis, which shares our focus on sustainability and innovation.”

He further anticipates mutual growth with the forthcoming Novelis plant coming online.

This collaboration reflects the industry’s commitment to meeting the rising demand for sustainable packaging solutions, aligning with consumer preferences for environmentally friendly and recyclable materials.