The investment will expand Novelis’ aluminum rolling operations in Pindamonhangaba, Brazil and 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, Novelis Inc. “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.”

Novelis also operates a foil mill at Santo Andre, Brazil, two aluminum smelters at Ouro Preto and Aratu, and nine hydroelectric plants located throughout the state of Minas Gerais.

“Novelis has had a long and mutually beneficial presence in Brazil,” said Alexandre Almeida, Senior Vice President of Novelis Inc. and President, Novelis South America. “This investment is further evidence of our commitment to the region and our continued partnership with Brazil as it grows in economic prosperity.”

“This is the largest single capital investment Novelis has made since the company was launched five years ago,” added Martens. “This is a reflection of the company’s strengthened financial position, enabling us to make significant strategic investments to support future growth.”

Novelis also reported net income attributable to its common shareholder of $405 million for fiscal year 2010, a significant increase when compared to the net loss of $1.9 billion reported for the same period a year ago.

SOURCE: Novelis

Edited by Ellie Duncan