JUNE 2011
                                        

Novelis increases aluminum rolling capacity and recycling in Asia

Novelis Inc. will invest approximately $400 million to expand its aluminum rolling and recycling operations in South Korea in response to the growing demand for its products in Asia and the Middle East.

The rolling expansion, which will include investments in both hot rolling and cold rolling operations, will increase Novelis’ aluminum sheet capacity in Asia to one million metric tons annually. A response to projected market growth in the region, the move is designed to rapidly bring to market high-quality aluminum rolling capacity aligned with the projected needs of a growing customer base. The new capacity is expected to come on stream in late 2013.

The move follows a year-long assessment by Novelis of strategic opportunities to serve rapidly growing markets in Asia and the Middle East.

The expansion will increase Novelis’ aluminum sheet capacity in Asia by more than 50 percent, and will also include the construction of a state-of-the-art recycling center for used aluminum beverage cans and a casting operation with annual production capacity in excess of 220,000 metric tons of sheet ingot.

The recycling component of the investment is further indication of Novelis’ emphasis on recycling as a core part of its business. Novelis currently obtains used aluminum beverage cans from across Asia and recycles them into new can sheet in partnership with third party processors. The new recycling center at Yeongju will be Novelis’ first integrated recycling and casting facility in Asia. The company is already a leader in can recycling in North America, Europe and South America.