- 10 Oct 2024
- ICICIdirect Research
HINDALCO'S US BASED SUBSIDIARY I.E. NOVELIS, HAS ENTERED INTO 3 YEARS STRATEGIC AGREEMENT WITH TSR RECYCLING GMBH & CO. KG FOR ALUMINIUM SCRAP, WHICH WILL BE UTILIZED AT NOVELIS'S EUROPE RECYCLING CENTRE.
News: Hindalco's US based subsidiary i.e. Novelis, has entered into 3 years strategic agreement with TSR Recycling GmbH & Co. KG for aluminium scrap, which will be utilized at Novelis's Europe recycling centre.
View: This partnership will ensure availability ~ 75,000 tonnes of raw materials derived from pre-sorted and processed end-of-life aluminium products to Novelis recycling operations. These materials will be utilized in the production of low-carbon aluminium sheet for the automotive segment. This initiative aligns with the company’s long-term objective of increasing its recycling content from the current 64% to 75% by 2030. We maintain a positive view on the company, supported by strong demand for aluminium driven by the increasing application in the automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco, and controlled leverage on B/S Debt to Equity at ~0.5x.
Impact: Positive