Aluminum Recycler Novelis to Expand Capacity in Brazil

Aluminum producer and recycler Novelis Inc. said it will invest about $32 million to expand recycling capacity in Brazil.

The Atlanta-based North American operation said the expansion of its aluminum rolling and recycling facility in Pindamonhangaba is in addition to $30 million that has been invested over the past two years to expand recycling capacity and establish a network of used can collection centers within the country. Novelis also has a $300-million rolling mill expansion currently under way at the plant, the company said in a news release.

"These back-to-back investments totaling more than $360 million respond to two major strategic initiatives for Novelis – expand our production capacity in emerging global markets and reduce our carbon footprint through increased recycling," said Phil Martens, Novelis president and chief executive officer.  “We recently established an ambitious goal to increase the recycled content of our products to 80 percent by 2020 from the current 33 percent, and investments such as this are an important part of our plan to get there."

The latest expansion will include a new recycling line that will nearly double the plant's capacity to recycle used beverage cans and other aluminum scrap from 200,000 metric tons per year to 390,000 tons per year. The new line, which is expected to come on stream in late 2013, will help to ensure metal supply for the plant's rolling mills while reducing operating costs and being environmentally friendly.