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CSX will provide rail transportation to Novelis Inc.’s future $2.5 billion aluminum recycling and rolling plant in Bay Minette, Alabama, the Class I announced yesterday.
The low-carbon facility will be the first fully integrated aluminum mill built in the United States in 40 years, CSX officials said in a press release.
In choosing a CSX Select Site for the project, Novelis noted that rail transportation, which can reduce logistics-related carbon emissions by up to 70% compared to highway transport, will contribute to its commitment to meeting the global demand for low-carbon, highly sustainable aluminum solutions.
To be built northeast of Mobile, the plant will have an initial capacity of 600 kilotons of finished aluminum goods capacity per year. More than half of the capacity of the new facility will be used to serve growing demand for aluminum beverage can sheets in North America.
In addition to the beverage can market, the facility will also serve the automotive market, where aluminum is the fastest-growing material as automakers make plans to achieve their sustainability goals.
Site work on the new facility is underway, and Novelis expects to begin commissioning in mid-2025.
"CSX is pleased to welcome Novelis to the South Alabama Mega Site and to be their transportation partner to move high-quality aluminum products across North America," said Arthur Adams, CSX senior vice president of sales and marketing.
The CSX team worked closely with local and state officials to secure development approvals for the location and promote the South Alabama Mega Site as shovel-ready for development.
"The Novelis project is what the CSX Select Site program is all about," Adams said.