Novelis to Invest $32 Million to Expand Aluminum Recycling in Brazil

Novelis Inc., a manufacturer of rolled aluminum products, has announced plans to invest about $32 million to expand the recycling capacity at its aluminum rolling and recycling complex in Pindamonhangaba, Brazil.

The announcement is in addition to a $300-million rolling mill expansion currently under way at the plant and $30 million invested over the past two years to expand recycling capacity and establish a network of used can collection centers within Brazil.

"These back-to-back investments totaling more than $360 million respond to two major strategic initiatives for Novelis – expand our production capacity in emerging global markets and reduce our carbon footprint through increased recycling," says Phil Martens, president and CEO for Novelis.

"We recently established an ambitious goal to increase the recycled content of our products to 80 percent by 2020 from the current 33 percent," Martens adds, "and investments such as this are an important part of our plan to get there."

The expansion will include a recycling line that will nearly double the plant's capacity to recycle used beverage cans (UBCs) and other aluminum scrap from 200,000 metric tons per year to 390,000 tons per year. In a statement, Novelis says that the new line, which is expected to come on stream in late 2013, will help to ensure metal supply for the plant's rolling mills, while reducing operating costs and delivering environmental benefits.

"Novelis is the leading producer of flat rolled aluminum products in South America and the largest recycler of beverage cans," says Marco Palmieri, senior vice president of Novelis Inc. and president, Novelis South America in a release. "Novelis has had a long, successful history in Brazil and these investments are further evidence of our commitment to strengthen our market leadership in the region."