Novelis to Establish UBC Buying Organization

Atlanta-based aluminum producer Novelis has announced it will establish a new organization for procuring used beverage cans (UBCs) in North America.

In a news release, Novelis says the new organization will make it “the largest UBC buyer” in North America. The announcement follows the company’s decision to withdraw from its Evermore joint venture with Alcoa effective August 31, 2012.

Novelis will procure all UBCs for its recycling plants in Greensboro, Ga., Berea, Ky., and Oswego, N.Y., directly through the new organization.

“This move is in line with our global strategy to enhance our scrap procurement and recycling assets to support our goal of achieving 80 percent recycled content in our products by 2020,” says Derek Prichett, Novelis’ vice president, Global Recycling. “The ability to independently control our assets and manage our business will provide us with more flexibility to execute our strategic plans. This is the primary driver behind our exit of Evermore.”

Novelis says it currently buys the equivalent of 40 billion cans each year, worth an estimated $1 billion. The company says it expects its global consumption of UBCs to grow to more than 60 billion cans by 2015.

Chris Anderson, currently supply chain manager for Evermore, will rejoin Novelis effective August 1, 2012, to lead the company’s new UBC procurement organization. He will report to Silverio Colalancia, director of recycling, Novelis North America.

In addition, the company anticipates a number of current Evermore employees will join the new Atlanta-based Novelis organization, which will include buyers placed throughout North America.

Novelis says it will continue to receive UBCs in North America exclusively through Evermore until August 31.

Novelis Inc. operates in 11 countries, has more than 11,000 employees and earned revenue of $11.1 billion in fiscal year 2012. Novelis produces aluminum sheet and foil products to the automotive, transportation, packaging, construction, industrial, electronics and printing sectors throughout North America, Europe, Asia and South America. Novelis is a subsidiary of Hindalco Industries Limited, an India-based integrated producer of aluminum and copper.