Aluminum firm invests more than $100 million to expand secondary smelter and install new coating line.
Novelis, an Atlanta-based aluminum rolling and recycling firm, has expanded the secondary smelting capacity and commissioned a new coating line for beverage can end stock at its Pindamonhangaba (SP), Brazil, complex. The company has invested $106 million in the combined projects and says they will result in an additional 100,000 metric tons of coating capacity and an additional 190,000 metric tons of smelting capacity.
“These critical expansion projects increase our capacity to meet the growing demand for beverage cans in Brazil and enable Novelis to process even higher levels of recycled material as we continue to increase the recycled content in our products,” says Tadeu Nardocci, senior vice president of Novelis and president of Novelis South America.
“Brazil is one of the most rapidly growing regions where Novelis operates around the world, highlighted by recent growth driven by the World Cup. As we look ahead, we expect the anticipated increase in the population’s disposable income and the upcoming Olympic Games to drive additional demand in the region,” Nardocci adds.
Novelis says its investment in the smelter, which it calls a recycling center, supports its commitment to increasing the recycled content in its products to 80 percent by 2020. With this expansion, the plant’s secondary aluminum smelter, already the largest in South America, will nearly double its annual capacity from 200,000 to 390,000 metric tons when fully commissioned later in 2014.
The coating line is designed specifically for beverage can end stock and enables Novelis to deliver directly to can customers in the region, a function previously provided by a third-party partner. Novelis says it expects to begin shipping commercial product from the new coating line before the end of 2014.