Novelis Expanding Brazilian Aluminum Recycling Operation

Novelis do Brasil Ltda., a subsidiary of Novelis Inc., has begun work on a $15 million expansion of recycling capacity at its integrated aluminum rolling and recycling complex in Pindamonhangaba, Sao Paulo, Brazil. 

The investment will include the addition of two new furnaces and related improvements, which will increase the plant's capacity to recycle used beverage cans (UBC) and other aluminum scrap by one third to 200,000 metric tons per year. The expansion will allow a nearly 20 percent increase in sheet ingot production to feed the plant's rolling mills. The new equipment is expected to come on stream by next spring.

"Improving our ability to recycle metal and manage our molten metal flow allows us to increase production of rolling ingot for our mills and reduces the need to purchase ingot from external parties," says Alexandre Almeida, senior vice president of Novelis Inc. and president, Novelis South America. "The overall effect is a more efficient operation to help us respond to our customers' needs."

Novelis is Brazil's leading producer of flat rolled aluminum products and its largest recycler of beverage cans, processing approximately 8 billion cans in 2009.

Novelis' assets in Brazil include primary aluminum units in Aratu (BA) and Ouro Preto (MG), aluminum rolling operations in Pindamonhangaba and Santo Andre (SP), and nine hydropower plants located throughout the State of Minas Gerais. 

Novelis also reports that its Novelis d Brasil Ltda. subsidiary has signed a multi-year agreement to supply aluminum sheet to the aluminum can producer Rexam, for its facilities in Brazil and Argentina.

Under the agreement, Novelis will be the sole supplier of can body sheet for Rexam's ten Brazilian plants (including one to be inaugurated in Pouso Alegre-MG later this year) and for its facility in Argentina. Additionally, Novelis will be the main supplier of aluminum sheet for can ends produced by Rexam in Brazil.

"This agreement demonstrates Novelis' potential to serve the demand for aluminum sheet from the Brazilian can market and strengthens its global leadership in high value aluminum rolling," says Alexandre Almeida, senior vice president of Novelis Inc. and President, Novelis South America. 

"This partnership with Novelis will be key to helping Rexam respond to the growing demand from the beverage can market in South America, in line with the company's regional investment plans," says Augusto Seoane, Rexam Supply and IT Director for Americas.