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
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.