ATLANTA, April 12, 2012 – Novelis has announced that it will close its Saguenay Works facility in Jonquiere, Quebec, Canada. Following a transition period, the plant will cease production in August 2012.
“While the long-term growth potential of Novelis remains strong, we must continue to optimize our footprint to more efficiently support our overall business objectives to drive profitable growth,” said Philip Martens, President and Chief Executive Officer of Novelis.
As a result of a comprehensive review of its manufacturing operations in North America, Novelis has determined that the Saguenay closure is necessary to ensure the organization is well-positioned for the future. This decision is driven by the need to right-size production capacity in North America, along with the ever-increasing logistics costs and structural challenges facing this location.
“This business decision is not a reflection of the dedicated workforce that comprises the Novelis Saguenay Works team – they have been providing the highest levels of product quality and customer service for more than 40 years,” added Tom Walpole, Senior Vice President and President, Novelis North America. “Our priority in the months ahead is to maintain safe operations while we manage the smoothest transition for our workforce, customers and suppliers at Saguenay.”
Saguenay Works is located in Jonquiere, Quebec, Canada and produces hot band aluminum coils for supply to other Novelis plants. The facility opened in 1971 on more than 15 acres and covers more than 150,000 square feet. Novelis employs 157 including staff and production employees at Saguenay Works.
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.
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 Novelis' expectations regarding the date production will cease at the plant. 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.