Novelis today announced the proposed closure of its Bridgnorth, UK, foil rolling and packaging operations in 2011 and the consolidation of those activities into other plants in its European system. The proposal is subject to consultation with Novelis employees at Bridgnorth, which currently number 319.
The proposal aims to improve the competitiveness of Novelis' overall European foil and packaging production system in response to over-capacity in the European foil market, increasing competition from low-cost countries, poor market conditions and long-term outlook in the segments served by the plant, and high exposure to currency fluctuations. Furthermore, the Bridgnorth plant is at a technical and logistical disadvantage compared to other plants in the Novelis Europe system.
"As a leader in aluminum foil and packaging, Novelis remains committed to these markets," said Tadeu Nardocci, president of Novelis Europe and senior vice-president of Novelis Inc. "Today's proposal is primarily to address European market and structural conditions, not because of any performance issues at Bridgnorth. Indeed, I would like to pay tribute to the professionalism of the highly-skilled team of employees at the site. The proposed consolidation of our foil and packaging businesses at the other plants in the Novelis Europe system would enhance our overall competitiveness and our sustainability as Europe's leading supplier."
If, after employee consultation, the proposal is implemented, existing customer orders will be fulfilled and clients will be contacted individually regarding the future handling of their business within the Novelis Europe system.
About Novelis
Novelis Inc. is the global leader in aluminum rolled products and beverage can recycling. The company operates in 11 countries, has approximately 11,600 employees and reported revenue of US$8.7 billion in its 2010 fiscal year. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial, electronics and printing markets throughout North America, South America, Europe and Asia. Novelis is a subsidiary of Hindalco Industries Limited (BSE: HINDALCO), one of Asia's largest integrated producers of aluminum and a leading copper producer. Hindalco is a flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. For more information, visit http://www.novelis.com.