St. Louis-based Metal Exchange Corp. (MEC) has formed a new joint venture with Novellini Industries, Mantova, Italy. The newly formed company, novALmec, will supply aluminum billet to the European market.
Metal Exchange says it brings its worldwide procurement network in aluminum scrap markets, four decades of expertise from its billet casting facilities in the U.S. and strong billet sales and marketing capability to the joint venture. Novellini is contributing its foundry, with the capacity to produce 22,000 metric tons per year of secondary aluminum billets. The Italian company also is contributing its upstream scrap processing facility and solid base load demand, Metal Exchange says.
NovALmec is expanding the existing casting facility to produce 33,000 metric tons per year with the added production scheduled to come on stream in early 2020.
“The combined capability that the partners bring to novALmec along with the expanded capacity provides a strong supply offering to serve our current and potential customers,” says Friedhelm Grobler, managing director with Metal Exchange International – Zurich.
“With this being our first investment in an overseas manufacturing facility, the selection of our partner was crucial,” says Mike Lefton, chairman and chief executive officer of Metal Exchange. “With both companies being privately held, second-generation family-owned businesses with identical shared values of safety, integrity and respect, it seemed like the perfect fit.”
Rick Merluzzi, president and chief operating officer of Metal Exchange, adds, “This is an important investment to strengthen the MEC European market position and it is part of our overall global strategy. This investment, along with the recent opening of our Singapore office and our existing offices in Zurich, Shanghai and St. Louis, strengthens our global footprint.”