Novelis Inc., the Atlanta-based aluminum rolling and recycling company, has reported net income attributable to its common shareholder of $176 million in the fourth quarter of fiscal year 2021 and net income from continuing operations of $180 million, up 179 percent and 186 percent, respectively, versus the prior year. Net income attributable to its common shareholder was $236 million for the full fiscal year 2021, and net income from continuing operations was $458 million, down 44 percent and up 9 percent, respectively, versus the prior year.

Excluding special items in both years, fourth-quarter fiscal 2021 net income from continuing operations was $172 million, up 12 percent versus the prior year, driven primarily by higher after-tax adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) partially offset by higher depreciation and amortization associated with the acquired Aleris business, according to the company. For the full fiscal year, net income excluding special items decreased 5 percent versus the prior year to $561 million in light of pandemic-related impacts on first-quarter profitability.

Steve Fisher, president and CEO of Novelis, says, "With the ongoing successful integration of Aleris, a diverse and innovative product portfolio and unmatched geographic footprint, we have proven our ability to deliver sustainable aluminum solutions to customers in a way that resulted in record financial performance. Looking forward we will continue to pursue growth opportunities through organic investment while working towards creating a more sustainable and circular future for our business, industry and society."

The company says its principal achievements in fiscal 2021 included completing the acquisition of Aleris, generating initial run-rate integration cost synergies of $79 million and contributing to record full-year shipments of 3.6 million metric tons, adjusted EBITDA of $1.7 billion, net income from continuing operations of $458 million and free cash flow from continuing operations of $740 million.

Additionally, Novelis says it expanded its sustainability platform by committing to reduce its carbon footprint by 30 percent by 2026, becoming a net carbon-neutral company by 2050 or sooner.

Novelis says it also committed to becoming a more diverse and inclusive workplace by increasing representation of women in leadership to 30 percent and to 15 percent in senior technical roles by 2024.

The company’s recycled content in its products grew to 61 percent in its 2021 fiscal year, and Novelis also says it strengthened its automotive business with the commissioning of new auto finishing capacity in the U.S. and China, co-founding Alumobility and offering an ultra-high-strength 7-series aluminum alloy to advance the continued adoption of aluminum in vehicles.

In the fourth quarter of its 2021 fiscal year, Novelis says its net sales increased 33 percent over the prior year to $3.6 billion, primarily driven by a 21 percent increase in shipments, favorable product mix and higher average aluminum prices. Total flat-rolled product shipments increased to 983,000 metric tons, mainly reflecting the addition of the acquired Aleris business and record automotive and beverage can shipments, as well as continued strong demand for building and construction and other specialty flat-rolled aluminum products, the company adds.

Adjusted EBITDA increased 32 percent to $505 million in the fourth quarter of fiscal 2021 compared to $383 million in the prior-year period. The increase in Adjusted EBITDA is because of higher organic volume, favorable metal benefits and a $60 million positive EBITDA contribution from the acquired Aleris business, Novelis says. On a consolidated basis, the company achieved an adjusted EBITDA per ton shipped of $514 in the fourth quarter of its 2021 fiscal year compared with $472 in the prior-year’s fourth quarter.

For the full 2021 fiscal year, the company says its net sales increased 9 percent versus the prior year to $12.3 billion, which was driven largely by a 10 percent increase in total shipments. Total flat-rolled product shipments increased to 3.61 million metric tons, which mainly reflects the addition of the Aleris business, beverage can demand and a rapid recovery in demand for automotive and specialty products following a challenging first quarter affected by the pandemic, according to Novelis.

Adjusted EBITDA increased 16 percent to $1.7 billion in fiscal 2021 compared with $1.5 billion in fiscal 2020. The company says the increase in adjusted EBITDA largely is attributable to $200 million in positive EBITDA contributed by the Aleris purchase, favorable metal benefits and good cost control, partially offset by unfavorable volume and product mix from lower automotive shipments in early fiscal 2021.

Novelis commissioned its greenfield Guthrie, Kentucky, automotive finishing plant and the new automotive finishing line in Changzhou, China, in the second half of fiscal 2021. Customer qualification continues to ramp up at both facilities to meet strong demand for lightweight, automotive aluminum sheet, the company says. The recycling, casting and rolling expansion in Brazil also remains on track to commission in the middle of fiscal year 2022.

"Our strong operational performance and the ongoing successful integration of Aleris have allowed us to nearly double cash flow generation over the prior year, enabling us to reduce net leverage while continuing to invest in organic growth projects that meet our customers' evolving needs," says Devinder Ahuja, senior vice president and chief financial officer, Novelis Inc.

Novelis says the integration of Aleris' continuing operations will drive a number of strategic benefits, including more than $180 million in potential run-rate synergies that have been identified. In the period between closing and the end of fiscal 2021, the company says it achieved $79 million of run-rate cost synergies. Novelis' acquisition of Aleris is expected to provide a strong pro-forma financial profile and strategic benefits that include gaining an integrated manufacturing footprint in China, further portfolio diversification with the addition of aerospace and building and construction, as well as new technology and operational capabilities.

In a May post to its website, the board chairman of Ulm, Germany-based Wieland Group says its plans involve “minimizing the need for virgin metals [and to] continuously invest in recycling technology.” The firm owns several metals production firms in the United States, including those of the former Olin Brass, Chase Brass and A.J. Oster.

Wieland Group Chairman of the executive board Dr. Erwin Mayr is quoted in the May website post as saying, “We have been a pioneer for the past 200 years and play a leading role in our industry—particularly in quality and outstanding service. Today, we forge a new path in sustainability and climate protection. We are motivated by our desire to take an active role in solving the climate crisis, and by our commitment and engagement with the future of the company and our employees.”

Mayr continues, “Wieland is committed to ‘net zero’ by 2045 at the latest. Copper can be recycled indefinitely, and we have already achieved secondary rates—i.e., the use of scrap—of over 90 percent for selected products. The environment benefits from such a high secondary ratio, by minimizing the need for virgin metals. Therefore, we continuously invest in recycling technology.”

Wieland Group completed its purchase of the former Global Brass and Copper Holdings Inc. and its Olin Brass, Chase Brass and A.J. Oster divisions in 2019. Red metal scrap-consuming facilities operated by the company in the U.S. include those in East Alton, Illinois, and in Montpelier, Ohio.

The South Carolina Department of Health and Environmental Control (DHEC) has issued an order to the New Indy Containerboard facility in Catawba, South Carolina, to correct what it calls an “undesirable level of air contaminants” emanating from the plant.

The agency says the order is a result of DHEC’s ongoing active investigation of the sources of strong and persistent odors in Lancaster and York counties, about which it says it has received more than 17,135 complaints.

“This order clearly defines immediate actions that New Indy must take to ensure good air quality for the people who live and work near the facility,” says Dr. Edward Simmer, director of the DHEC. “As the state’s public health and environmental protection agency, it is our duty to ensure that companies in South Carolina are good stewards of our beautiful state and that our residents have clean, odor-free air to the extent we can control.”

South Carolina Gov. Henry McMaster says, “This decisive action is the result of a vigorous, cooperative investigation by DHEC and its partners. I’m confident that this order will bring long-term resolution to this matter and ease the concerns of York and Lancaster county residents.”

In addition to the DHEC’s monitoring and investigation, the agency says it requested the United States Environmental Protection Agency (EPA) to assemble a technical to analyze modeling data and screen potential sources of sulfur compounds in the area. “We are hopeful that affected residents will begin to see a quick and lasting improvement to these odors,” Simmer says.

In an early May online article by Charlotte, North Carolina-based WCNC-TV, residents in the Catawba area describe a “rotten egg” smell permeating the air in their neighborhoods. The residents also claim some have experienced “headaches, nausea, skin and eye irritation.”

In April, the television station posted a copy of a letter from a New Indy vice president of manufacturing who wrote in part that an environmental testing firm hired by New Indy did not detect “compounds in any meaningful concentration that would equate to intense odors” emanating from the mill. The papermaker instead pointed to a fire that had taken place nearby and “sewage-related odors.”

New Indy purchased the Catawba mill from Resolute Forest Products in December 2018 and expressed its desire to have the mill produce “a diverse array of products from existing offerings like market pulp, lightweight coated papers and specialty grades to new offerings of high-quality, virgin ultra-lightweight linerboard.”

Lakewood, Colorado-based Pretred, which makes industrial barriers with around 95 percent recycled materials, says it has received a $3 million “seed investment” led by HG Ventures, the corporate venture arm of Indianapolis-based The Heritage Group.

Pretred says it will use the funds to scale its United States-based tire and plastic recycling process “to meet the growing demand for green construction products.” Pretred technology has been designed to recycle approximately 65,000 scrap tires for every mile of barriers fabricated. The barriers reduce 98 percent of equivalent carbon dioxide (CO₂) emissions compared with concrete barriers, according to the firm.

“By successfully raising our seed round, we can accelerate our scale-up and deploy our barriers and blocks in markets that are in immediate need of high-performance sustainable materials,” says Eric Davis, CEO of Pretred. “We value our partnership with The Heritage Group and have already tapped into their technical and market expertise in construction materials and the circular economy.”

“We are thrilled to have the opportunity to invest in Pretred, as we have been impressed with the creativity, experience and passion of their management team,” says Ginger Rothrock, senior director at HG Ventures and Pretred board member. “We believe that Pretred is a pioneer in the manufacture of green construction materials by fashioning beautiful, rugged and environmentally responsible construction products.”  

HG Ventures partners with entrepreneurs who produce sustainable materials, infrastructure and industrial systems, investing from $1 million to $10 million in such firms as a lead or syndicate partner.  HG Ventures describes Pretred as “a graduate of the 2020 cohort of The Heritage Group Accelerator Powered by Techstars, a program for mentoring and developing early-stage companies in the ‘hardtech’ industries of advanced materials, infrastructure, and environmental services.”

In February, HG Ventures announced a collaborative effort with Los Angeles-based Romeo Power Inc. to develop a lithium-ion battery reuse and recycling facility in the southwestern U.S.