Novelis Boosting European Aluminum Capacity

Novelis Inc. announced plans to invest 11 million Euro (US$17.2 million) to expand production capacity at its plant in Nachterstedt, Germany, in response to growing demand in the automotive and beverage can end markets in Europe.

The investment will increase the output and flexibility of the plant's continuous annealing and lacquering line. The additional finishing capacity will become available during the first quarter of next year.

"This strategic expansion supports our European can customers' growth and enhances our offering to automotive clients," said Martha Finn Brooks, president and COO for Novelis. "Novelis' innovative lightweight automotive solutions are helping car makers to improve the carbon footprint and performance of their vehicles, which is leading to increased usage of aluminum sheet in cars," she added.

The region's beverage can market is growing strongly, particularly in Central and Eastern Europe. The investment will enable Novelis to meet customers' increased need for can end capacity.

Novelis states that it operates the first dedicated aluminum can recycling plant in Europe.

Erwin Mayr, president of the company's Advanced Rolled Products division in Europe, added: "This investment builds Novelis Europe's unique dual supply capability for both automotive and can end products. For automotive, the combined unrivalled capability of our Nachterstedt and Sierre (Switzerland) plants will be significantly expanded.

"For can end, the investment will give us dual-route capability at Nachterstedt and Gottingen (Germany), allowing increased security, flexibility and production capacity."