Novelis commissions bag houses at UK plant to double UBC recycling capacity

Novelis

Novelis commissions bag houses at UK plant to unlock its next recycling expansion step. Novelis commissions bag houses at UK plant in Latchford, England, as it prepares to double used beverage can processing. The move strengthens emissions control while the site upgrades core recycling equipment.

Novelis commissioned three new bag houses as part of a wider $90mn investment program. The project also adds a new dross house and technology upgrades across shredding and sorting. Meanwhile, the site improves de-coating and melting to lift throughput and metal recovery.

Novelis commissions bag houses at UK plant ahead of a tighter UK circularity policy cycle. The country will enforce a deposit return scheme for single-use drink containers from October 2027. As a result, UBC collection volumes should become more predictable for domestic recyclers.

What the $90mn Latchford expansion adds to recycling capacity

The Latchford facility already runs at 195,000 t/yr and handles both UBC and automotive-grade scrap. The expansion adds 85,000 t/yr of additional recycling capacity once fully ramped. Therefore, the plant can raise output without relying on primary aluminium growth.

Bag houses matter because they support cleaner, more stable operations at higher load. Better dust capture reduces downtime risk during shredding and melting. However, the real value comes from pairing emissions control with higher-capacity front-end processing.

Why the UK deposit return scheme changes the UBC economics

Deposit systems typically improve can return rates and cut contamination. Cleaner UBC feed reduces sorting loss and improves melt yield. As a result, recyclers can produce tighter spec recycled aluminium for rolling mills.

DRS timing also shapes investment sequencing for Novelis and its peers. The company moved early versus its original December 2026 commissioning target. Meanwhile, early readiness can help secure supply contracts as competition for UBC tightens.

The Metalnomist Commentary

This expansion signals a shift from “capacity announcements” to operational readiness. However, the margin upside depends on UBC quality and energy costs through 2027. The best-positioned rollers will lock in feedstock and optimize melt yield.