The rolled aluminum products producer and aluminum recycler Novelis, headquartered in Atlanta, has officially opened its expanded aluminum rolling operations in Sao Paulo. The company says the expansion will increase aluminum production capacity at the plant by more than 50 percent to greater than 600,000 metric tons of aluminum sheet per year.
The $340 million expansion is the largest capital such project for Novelis in South America in the past decade, according to the company.
"This investment reflects the ability of Novelis to respond to our customers' needs, develop new products and surpass market expectations," says Phil Martens, president and CEO of Novelis. "Brazil is one of the most rapidly growing regions where Novelis operates around the world. With the expansion of our plant in Pindamonhangaba, we expect to meet the growing demand for aluminum flat rolled products in South America for the next decade."
The expansion included the installation of a third cold rolling mill, designed with advanced technology to deliver improved product quality and productivity, the company says. In addition, the investment included a new ingot casting center as well as a new pusher furnace for the hot rolling mill.
"The investment strengthens the company's leadership position in key markets, including beverage cans and aluminum packaging," says Tadeu Nardocci, president of Novelis South America. "Looking ahead, it will also allow Novelis to explore new opportunities in South America in markets such as automotive. The new Brazilian automotive regulation, Inovar-Auto, set reduction targets for CO2 (carbon dioxide) emissions that will require automakers to produce lighter, more fuel-efficient vehicles in the future."
Novelis’ new plant in Brazil also houses what the company says is the largest aluminum recycling center in South America.
"We are expanding our recycling operations, increasing the use of postconsumer aluminum scrap and accelerating the development of new alloys that contain a greater percentage of recycled content," Nardocci adds. "These changes are aligned with our sustainable business strategy including our aggressive global target to reach 80 percent recycled content in our products by 2020."