Novelis to expand aluminum production, recycling capabilities in Brazil

Novelis to expand aluminum production, recycling capabilities in Brazil

Investment of $175 million will add 100,000 metric tons of rolling and 60,000 metric tons of recycling capacity.

November 13, 2018

Novelis Inc., headquartered in Atlanta, says it will investment $175 million at its Pindamonhangaba plant in the Paraíba Valley between Sao Paulo and Rio de Janeiro. The expansion of what Novelis says is its flagship facility in South America will benefit its beverage can and specialty customers by increasing rolling capacity by 100,000 metric tons and recycling capacity by 60,000 tons. Following the expansions, Pindamonhangaba will be able to produce approximately 680,000 metric tons aluminum sheet and 450,000 metric tons of recycled metal annually.

The company says it also will invest in a new water sourcing system and purchase approximately 90 acres of land for potential future growth.

“This investment in additional rolling and recycling capacity further strengthens our commitment to the South American region and better positions us to meet our customers' needs,” says Steve Fisher, president and chief executive officer, Novelis. “Our focus on establishing another reliable water source also helps us further deliver on our purpose of shaping a sustainable world together.”

Construction on these expansions will begin in February 2019 and is expected to be complete in 2021. The project includes an increase in sheet ingot, hot mill and recycling production and complementary improvements and should create more than 50 new jobs, Novelis says.

“Sustainability is the backbone of our business model, and this expansion project is fully aligned with this vision,” says Tadeu Nardocci, senior vice president of Novelis and president of Novelis South America. “Pindamonhangaba plant is already the largest center of rolled products and aluminum recycling in South America. With this expansion, Novelis solidifies its leadership position and creates new opportunities to offer innovative solutions to its customers.”

Novelis says the expansion has the support of Investe SP: a Sao Paulo Agency for the Promotion of Investments and Competitiveness. 

“It's very important for the state of Sao Paulo to contribute to this high value-added project,” Sérgio Costa, the agency's director, says. “Sao Paulo needs initiatives like this that promote the economic, social and environmental development of the state. Investe's role is to help companies to install or develop their businesses and, in doing so, improve economic potential, generate jobs, income and increase the production supply chain and logistics involved.”