Novelis Advances UK Can Recycling Expansion as Latchford Upgrade Moves Forward

Novelis has commissioned new baghouse systems at its Latchford facility in northern England, a step that brings the aluminum producer closer to doubling its capacity to recycle used beverage cans and preparing for the UK’s planned deposit return scheme, the company said in recent project updates.

The Latchford site is a cornerstone of Novelis’ UK operations and one of Europe’s largest aluminum recycling plants. Demand for recycled aluminum has risen sharply as beverage brands and regulators push for higher recycled content and lower emissions, while the UK government continues work on a national deposit return system aimed at lifting can collection rates.

Novelis announced a £90 million investment in the Latchford expansion last year as part of a broader European strategy to secure domestic scrap supply and cut carbon intensity. Industry data show aluminum made from recycled material can reduce emissions by more than 90 percent compared with primary metal, making recycling capacity a competitive and regulatory priority.

The newly commissioned baghouses are designed to improve air quality control and material recovery during processing and are one element of a wider modernization program. The upgrade also includes a dedicated dross processing unit and new shredding, sorting, de-coating and melting technologies. Once fully operational, the project is expected to add about 85,000 tonnes of annual recycling capacity and enable the site to handle the full volume of aluminum cans collected through a future UK deposit system, based on current government projections.

Company estimates indicate the expansion could help reduce more than 350,000 tonnes of carbon dioxide equivalent emissions per year across Novelis’ European operations, reflecting both higher recycled content and improved process efficiency. Observers note that securing local recycling capacity is becoming increasingly important as competition for clean aluminum scrap intensifies across Europe.

Novelis executives have framed the investment as essential infrastructure for the UK’s circular economy ambitions. Industry groups argue that without sufficient domestic processing, higher collection rates under deposit schemes risk pushing valuable material into export markets rather than supporting local manufacturing.

Analysts say the Latchford expansion positions Novelis to benefit from regulatory change while offering brand customers a more reliable supply of low-carbon aluminum. It also reduces exposure to volatile primary aluminum markets at a time when energy costs and geopolitical risks remain elevated.

Looking ahead, the pace of the UK deposit return scheme rollout and final policy details will shape how quickly the new capacity is utilized. If implementation stays on track, market participants expect recycling volumes to rise rapidly, putting early movers such as Novelis in a stronger position.

Source: Novelis

SUNSHINE Spotlight: The Latchford upgrade underscores how industrial investment is aligning with policy to keep aluminum cans circulating within the UK’s emerging circular economy.