Alcoa Assumes Control of Evermore Recycling

Alcoa has reached an agreement with Novelis to assume full control of the Evermore Recycling joint venture, effective Aug. 31, 2012. Evermore Recycling is focused on the collection of used beverage cans (UBC). According to an Alcoa press release, the joint venture was the largest purchaser of UBCs in the world.

As a result of the new agreement, Pittsburgh-based Alcoa will take over full ownership and operation of Evermore Recycling and make it part of Alcoa's Global Packaging group. Alcoa's Evermore Recycling will continue to be based in Nashville, Tenn.

The joint venture was first established in 2009 with plans for the JV to continue through 2014. In December, 2011, Novelis approached Alcoa about withdrawing early from the joint venture.

"Alcoa's Evermore Recycling is known throughout the world for its strong and committed relationships across the recycling supply chain and for its ability of making it easy to work together effectively," says Andrey Donets, president of Alcoa Global Packaging. "When the opportunity first presented itself, we immediately said we wanted Evermore. We are confident the strong relationships we have in the scrap market will grow even stronger as we take over full control of the company.

"We've been a leader and pioneer in recycling since the aluminum can was invented, and we see great opportunities in this new chapter to deepen our rich heritage in recycling," adds Donets.
 

Kevin Lowery, a spokesman for Alcoa, says it is too early to announce any significant changes that may take place as Alcoa assumes ownership of Evermore. However, he notes, “We get feedback from people. One thing that we heard [was people wished] we could be easier to work with. The complexity of a joint venture made it a bit challenging.” By being the exclusive owner of the UBC recycling business, some of those problems can be alleviated, said Lowery.

As Alcoa takes over ownership of Evermore Recycling, Novelis will establish a new organization to purchase UBCs in North America.

Through the creation of a new program, Novelis will purchase 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, vice president, Global Recycling for Novelis. "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."

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 that a number of current Evermore employees will join its new Atlanta-based organization, which will include buyers in offices throughout North America.