Novelis to Close European Operations

Novelis Inc. has announced that it will exit the European aluminum casting alloys business, closing its casting alloys operation in Borgofranco, Italy, by the end of March 2006. The plant currently employs 105 people.

Novelis has formally informed the relevant authorities and unions of the
closure decision, as required by Italian law 223/91.

"The casting alloys business is not a core part of the Novelis strategy,"
Chris Bark-Jones, president of Novelis Europe, says. "We are focused on
enhancing our product portfolio in high-value rolled-products markets where we enjoy technological leadership. The Borgofranco operation is not related to
our rolling business and is not significantly linked to any of our other
facilities."

Bark-Jones adds that the Borgofranco plant "operates in an environment of
unfavourable economic conditions and structural overcapacity. The facility is
disadvantaged in terms of scale, technical capability and cost base. As a
result, it has become increasingly less competitive in today's marketplace.
Despite the efforts made by the plant's employees, it has recorded consistent
losses. All options, including a sale of the plant, have been fully evaluated,
but we believe there is no feasible way of sustainably operating the plant."

As part of the environmental remediation of the site, the salt cake
recycling unit will continue to operate for a limited period in order to
support the elimination of the salt cake by-product at the facility, according to the company. 

Novelis Inc. expects to incur a charge of approximately $24 million for
the plant closure. Additional information regarding the charge will be
available in the coming weeks. The final closure of the facility will benefit
Novelis Europe since the losses associated with Borgofranco will be
eliminated.

Novelis, which was spun-off by Alcan Jan. 6, 2005, is a global
leader in aluminum rolled products and aluminum can recycling. The company has 36 operating facilities in 11 countries and more than 13,000 employees.