Home News Novelis and Alcoa Form UBC Buying Company

Novelis and Alcoa Form UBC Buying Company

Municipal Recycling, Nonferrous, Electronics, Plastics, Paper, Auto Shredding, Metallics

Stated goals of Evermore Recycling include increasing the UBC recycling rate.

August 24, 2009

Two of America’s largest consumers of aluminum used beverage containers (UBCs), Novelis and Alcoa, have announced the formation of a new company designed for the joint procurement of UBCs for both firms.

 

“Evermore Recycling LLC is a new, independent company, formed by Novelis and Alcoa for the procurement of aluminum UBCs,” reads a statement issued by the two companies. “Evermore Recycling is designed to create value by increasing efficiency, building stronger supplier relationships, and increasing recycling.”

 

In a series of questions and answers posted to its Web site, the new company has indicated:

 

  • Its focus is on acquiring used aluminum beverage cans, not other forms of scrap.

 

  • Those wishing to sell directly to Evermore can begin by providing contact information through its Web site or a toll-free number.

 

  • Regarding Evermore’s purchasing process, contracts will be executed on Alcoa and Novelis purchase orders depending upon receipt location, “with payments made directly from the appropriate contracting party.” Additionally, Evermore will decide where to ship the UBCs it purchases.

 

  • Novelis has a slight majority ownership position in Evermore.

 

In the initial statement, the creation or Evermore is being portrayed as a way for the companies to improve the quality of shipments and to buy more UBCs directly from dealers. “Evermore Recycling [will] work to increase the quality of UBCs and decrease freight costs, inventory, and administrative costs while generating other cost savings through more effective supply chain management,” states the initial news release. “Higher quality UBCs will yield higher value for suppliers, and a more efficient supply chain will result in more consistent shipments and more cost efficient operations.”

 

The announcement characterizes Evermore as “providing suppliers a direct relationship with two of the leading consumers and processors of UBCs within North America.”

 

While Evermore will initially begin as a broker operating from Nashville, Tenn., and regional buying offices, “Evermore Recycling will evaluate capital investments to improve the quality, consistency and availability of UBC supply,” it states on its Web site.

 

The statement also touts a recycling policy aspect to the establishment of Evermore. “In addition to purchasing metal, Evermore Recycling is committed to raising the UBC recycling rate toward the aluminum industry’s objective of 75 percent,” says the news release. “Evermore will increase purchases of UBCs through both collection initiatives and the development of a broader supply base locally and internationally.”

 

A Web site for the new company has been established at www.evermorerecycling.com.

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