US-based aluminium packaging provider Novelis has commenced construction on a new recycling centre in South Korea.

The $50m recycling centre in Ulsan, which will have a 100kt annual casting capacity of low-carbon sheet ingot, takes the company’s recycling capacity by more than 20% to 440kt in Korea.

According to Novelis, the new facility will enhance its capability to process different types of aluminium scrap.

In addition, the Ulsan recycling centre is designed to address the long-term global demand for sustainable, low-carbon aluminium sheets for can, automotive and high-end speciality products.

The centre is expected to cut Novelis’ carbon emissions by more than 420,000tpa.

Novelis Asia president Sachin Satpute said: “As the world leader in sustainable, low-carbon rolled aluminium solutions, we are focused on accelerating the transition of the aluminium industry to a circular economy model through the increased use of recycled content in our products.

“Doing so will reduce our carbon footprint, as well as that of our customers and industry as a whole, and lead us closer to realising our 2050 goal for carbon neutrality.” 

The new facility marks the latest investment for Novelis to increase its recycling capacity globally.

The facility is being built by Ulsan Aluminium, the company’s joint venture (JV) with Kobe Steel .

It is expected to be operational in 2024.

A ground-breaking ceremony for the facility was attended by Ulsan Metropolitan City Mayor Doo-Gyeom Kim and Ulsan Chamber of Commerce chairman Yeon-Chul Lee, among others.

In South Korea, Novelis also operates another aluminium recycling centre in Yeongju, North Gyeongsang Province.

The Yeongju facility, which is claimed to be the largest in Asia, processes more than 18 billion used beverage cans annually.

Last month, Novelis started the construction of a recycling and rolling plant in Bay Minette, Alabama, US.