ATLANTA, Dec. 21, 2011 /PRNewswire/ -- Novelis, the world's largest producer of rolled aluminum, today announced it will invest approximately $50 million to install a coating line for beverage can end stock at its operations in Pindamonhangaba, Brazil.
"This expansion is the most recent step in an ongoing program to expand our leadership position in supplying Brazil and South America with high-quality beverage can sheet for this growing region," said Phil Martens, President and Chief Executive Officer for Novelis Inc.
Novelis, the leading supplier of can body stock and can end stock in South America, forecasts the demand for aluminum beverage cans in the region to grow by seven percent per year until 2020.
"This investment will help round out our can sheet offering for our customers in the region and allow us to keep pace with the surging demand for our products," said Marco Palmieri, Senior Vice President of Novelis Inc. and President, Novelis South America. "The new line will allow us to increase our capacity to meet customer demand while shortening delivery lead times."
The new coating line, which will be fully integrated with in-line levelling and trimming using the latest technology, is expected to come on stream in late 2013. The line will have the capacity to process 100,000 metric tons of aluminum sheet per year.
The Pindamonhangaba facility is an integrated aluminum rolling and recycling complex located in the state of Sao Paulo. The plant is currently in the midst of a $300 million expansion of its rolling mill and a $32 million expansion of its aluminum recycling capacity.
Statements made in this news release describing 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 those regarding Novelis' expectations for demand growth in South America and the expected completion date of the project. 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 outcomes are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended March 31, 2011.
Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The Company operates in 11 countries, has nearly 11,000 employees and reported revenue of $10.6 billion in fiscal year 2011. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial, electronics and printing markets throughout North America, Europe, Asia, and South America. 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, please visit www.novelis.com.
SOURCE Novelis Inc.