ATLANTA and MILAN, June 30, 2011 /PRNewswire/ --
- Increased Capability underscores Commitment to Aggressive Sustainability Goals
Novelis Inc., the world's largest producer of rolled aluminum and a global leader in aluminum recycling, today announced the investment of $15.8 million in the construction of a new continuous casting line at its production facility in Pieve Emanuele, Italy. The new line will recycle painted scrap aluminum into the metal needed to produce rolled aluminum sheet.
Today's announcement follows the company's stated commitment in May to increase the amount of recycled metal it uses in its rolling operations around the world from 34 percent today to 80 percent by 2020. Novelis is leading the aluminum industry in sustainably reducing the embedded carbon footprint of its operations and of its customers' products through increased recycling.
"This is one step towards Novelis reaching our ambitious global recycling target," said Tadeu Nardocci, president of Novelis Europe and senior vice president of Novelis Inc. "It also makes sound business sense to install a fifth continuous caster at our Pieve plant so that we can better meet the demands for material across our European operations."
"This is good news for the environment, for Novelis and for our Italian employees," added Emilio Braghi, general manager, Litho and Painted Value Stream, Novelis Europe. "Indeed, the decision announced today will see the largest single investment in our Italian facilities in twelve years. It will increase the amount of continuous caster material used for our Painted Products, where Novelis has an undisputed leadership in supplying premium specialty surface finishes to the European market with coil coating lines in Bresso, Gottingen and Nachterstedt."
The Novelis plant at Pieve Emanuele is an integrated continuous casting, rolling and finishing operation. The aluminum sheet and coil produced at the facility is sold to distributors and end users in a number of industrial and construction markets. The Pieve plant is also the supplier of aluminum coil to the nearby Novelis mill at Bresso, where it is processed into pre-painted, textured and bright finish material for use in transport, construction and industrial applications. Applications include roofing, architectural cladding and domestic appliances.
The painted scrap that is generated during the production processes in Novelis' Italian operations, as well as other low-grade used aluminum from external sources, will be recycled into high quality rolled aluminum on the new equipment. The lifecycle environmental benefits are significant as recycling aluminum uses only five percent of the energy required to make the metal from raw materials and avoids 95 percent of the greenhouse gases associated with primary aluminum production.
The use of continuous casting technology also brings logistical advantages as a key production step is brought in-house, thus saving transport and other costs. Furthermore, the investment at Pieve will also free up capacity where it is needed elsewhere in the Novelis Europe system to meet the growing demand for other high-end products such as can body sheet and automotive sheet.
Installation of the new line, which will include a double-chamber melting furnace, continuous casting line and ancillary equipment, will be completed by the end of 2012. The installation will be followed by a commissioning and ramp-up period.
Statements made in this news release describing Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include those regarding Novelis' expectations about the anticipated installation date for the new line. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended March 31, 2011.
Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The Company operates in 11 countries, has nearly 11,000 employees and reported revenue of $10.6 billion in fiscal year 2011. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial, electronics and printing markets throughout North America, Europe, Asia, and South America. Novelis is a subsidiary of Hindalco Industries Limited (BSE: HINDALCO), one of Asia's largest integrated producers of aluminum and a leading copper producer. Hindalco is a flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. For more information, please visit http://www.novelis.com.
SOURCE Novelis Inc.