Alcan Searching for Brazilian Recycling Partners

The aluminum giant looks to grow its presence in the South American market.

Alcan, headquartered in Montreal, Canada, is searching for partners to recycle the metal in Brazil's northeast region, according to the Brazilian newspaper Gazeta Mercantil. Alcan is one of the largest aluminum producers in the world.

In the country's north and northeast regions, aluminum beverage can consumption stands at around 600 million units a year. To boost its recycling activities, Alcan - Latin America's largest recycler - wants to set up partnerships with local garbage collectors and recyclers.

According to aluminum sector entity Abal, Brazil recycles 85 percent of the aluminum cans it consumes, more than any other country except Japan.

The company also aims to grow its presence in the Brazilian market through acquisition. Earlier this month Alcan acquired an aluminum composite plant in Brazil. It will be the first composite aluminum plant for Alcan in South America.

The company achieved this through acquiring Alcotex Tecnologia Industrial Ltda’s facilities in Camacari, Bahai State.

Following additional investment, this plant will become the newest production site for Alcan's composite business. This initiative is part of Alcan's strategy to grow this sector utilising its leading composites technology and expertise.

A new company, Alcan Composites Brasil S.A., has been established to oversee this new activity, which will be a joint venture between Alcan Aluminio do Brasil Ltda and the NJK Group of Brasil.

The plant is expected to begin producing Alcan's Alucobond material by the middle of this year, with an eventual capacity of approximately 100,000 sq. meters per month. The plant will primarily serve the markets of the Mercosur region comprised of Brazil, Paraguay, Uruguay, Argentina, Bolivia and Chile.