Realignment of capacity will improve competitiveness
BRIDGNORTH, Apr. 2, 2007 — Novelis today announced a proposed restructuring of its Bridgnorth foil rolling and packaging operations to improve competitiveness in light of structural changes in key markets. Approximately 120 jobs are likely to be affected.
François Coëffic, president of the Novelis Europe Foil and Technical Products business unit said, “A number of customers for both the foil rolling and packaging businesses at Bridgnorth have been moving their activities outside the UK. This has made it increasingly difficult for Bridgnorth to supply material that is both competitive and profitable. The proposed restructuring would improve the performance of our Bridgnorth plant and our overall European foil businesses by realigning capacities in our plants in light of the changing market conditions. Total European sales volume would not be affected by this proposed restructuring. We will work closely with customers to ensure continuity of service.”
It is proposed that the capacity of the foil rolling unit would be reduced and the plant would move to a more focussed product range. The converting and laminating operations would be combined into one overall packaging business with shared support functions. In addition, one of the two laminating machines would be closed. These proposed changes would bring the size of the operation into line with the current and likely future market requirements from the UK and elsewhere. By optimising the loading of the plant with a lower overall cost base, Novelis expects that competitiveness and profitability would be improved.
Steve Clarke, general manager at Bridgnorth, commented, “The proposed restructuring of our Bridgnorth businesses would help support a profitable, sustainable future for our plant as part of a competitive European supply chain. Around 300 of the current 420 jobs here would be maintained under the proposals as presently envisaged. I appreciate the effect that today's announcement will have on employees at Bridgnorth, and we will make every effort to minimise the impact of this on our people.”
Novelis at Bridgnorth is part of Novelis Inc. (NYSE: NVL) (TSX: NVL), the global leader in aluminum rolled products. The Company operates in 11 countries, has approximately 12,900 employees, and reported revenue of $9.8 billion in 2006. Novelis offers the capability to provide its customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America and South America. Through its advanced production capabilities, the Company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. For more information, visit www.novelis.com.
Statements made in this news release which describe Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include, among other things, Novelis' expectation that the restructuring of the Bridgnorth plant, including the elimination of up to 120 jobs, realignment of capacities, and closing of certain machines, will improve performance of the plant and the overall European foil business and increase the plant's competitiveness and profitability. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact the proposed restructuring are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2006, as filed with the United States Securities and Exchange Commission, and are specifically incorporated by reference into this news release.
Media Contact:
John Gardner
+41 44 386 2155
john.gardner@novelis.com