Novelis expands rolling operations in South America

Novelis announced that it will invest approximately $300 million to expand its aluminum rolling operations in Pindamonhangaba, Brazil, in response to the growing demand for its products in South America.

The expansion will increase the plant’s capacity by more than 50 percent to over 600,000 metric tons of aluminum sheet per year. The project, which includes the addition of a third cold rolling mill, a new ingot casting center, a new pusher furnace for the hot rolling mill and various ancillary improvements, is expected to come on stream in late 2012.

“We are experiencing strong demand for our products in South America, particularly for beverage can sheet,” said Phil Martens, president and chief operating officer. “Growing per capita income and changes in consumer behavior are driving double-digit growth in demand for beverage cans. Many of our South American customers are accelerating their investments in can making plants and our expansion at Pindamonhangaba will allow us to stay ahead of that demand.”

According to Abralatas (Brazilian Association of Highly Recyclable Cans Manufacturers), can sales in Brazil grew by 11.7 percent in 2009, representing a consumption of 14.8 billion units or 40.5 million aluminum cans per day.