Novelis to close primary aluminum smelter in Brazil

The aluminum producer Novelis, headquartered in Atlanta, has announced plans to shutter its Ouro Preto, Minas Gerais, Brazil, primary aluminum smelter by the end of 2014. In deciding to close the smelter, Novelis says it is looking to focus its efforts in Brazil on its aluminum rolling and recycling operations.

“The decision to end operations at Ouro Preto is consistent with our global strategy to build our business around sustainability – transforming from a linear business model to a closed-loop business model focused on recycled content,” says Tadeu Nardocci, senior vice president, Novelis and president, Novelis South America. “In addition, the closure is driven by systemic issues affecting the entire primary aluminum industry in Brazil impacting cost of operations and overall competitiveness.”

The Ouro Preto facility produces 18,000 metric tons of aluminum billets per year, which are then sold to third-party extruders.

“Our priority in the months ahead as we work towards closing the facility is to maintain safe operations while we manage the smoothest transition for our workforce, customers and the community,” says Nardocci.

Last year, Novelis completed a $340 million expansion of its rolling operations in Brazil, which increased its aluminum sheet production capacity to 600,000 metric tons per year. In addition, Novelis recently concluded a $106 million expansion of its recycling center and installed a new can coating line; both projects begin commercial operations this month.