Novelis To Expand in Korea

Novelis Inc., headquartered in Atlanta, has announced that it will invest $30 million during the next two years to expand its aluminum rolled products production capacity at its 68-percent-owned plant in Yeongju, Republic of Korea. According to a press release from Novelis, the investment is an important step in executing Novelis' strategy focusing on “economically attractive and technologically sophisticated rolled aluminum products” worldwide.

Martha Brooks, COO of Novelis, says, "Our investment in Yeongju represents a key step in executing our business strategy, allowing us to expand capacity to enhance our high-end product portfolio in the fastest growing region in the world while continuing to manage our capital expenditures and use cash to serve our de-leveraging commitment."

The investment will be used to add a fourth stand on the Yeongju plant's continuous hot rolling mill and to enhance a single-stand cold rolling mill, coil coating line and finishing equipment. These improvements will increase the plant's ability to manufacture coated end stock for aluminum beverage cans and other high-value applications used in electronics and construction industries, according to Novelis. As a result of these changes, Novelis says that it expects its overall capacity in Korea will increase by 100,000 metric tons and its ability to provide coated end and tab stock will triple by 2008. The company reports that its shipments in the Asian region were approximately 500,000 tons in 2004.

"Reflecting the high performance of our employees and assets, we have made steady improvements in quality, service and technology utilization, enabling Novelis Korea to double its output over the last five years to become the largest supplier of aluminum rolled products and can body stock in Asia," Jack Morrison, president of Novelis Asia, says in a statement. "Investing now in targeted equipment and processes will allow us to further expand our capability in support of customers in can stock, electronic and construction markets with technologically advanced products such as coated end stock and sheet used in flat-screen display units."

The Yeongju facility is part of Novelis Korea Ltd., a joint venture of Novelis Inc. (68 percent), Taihan Electric Wire Co. Ltd. (31 percent) and the Hyundai Group ( 1 percent). Novelis Korea has more than 1,200 employees and can supply a broad range of high-end aluminum rolled products.

Novelis operates in 11 countries and has approximately 13,000 employees. Through its production capabilities, the company supplies aluminum sheet and foil to the automotive/transportation, beverage/food packaging, construction/industrial, and printing markets.

For more information, visit www.novelis.com.