Novelis to pull out of JV with Alcoa

Aditya Birla Gr is exiting JV with Alcoa in US for procurement of used beverage cans.

Written by Agencies | Atlanta/new Delhi | Published: July 17, 2012 8:57:12 pm

Aditya Birla Group firm Novelis is exiting its joint venture with Alcoa in North America for procurement of used beverage cans,and will set up a new company for the same purpose on its own.

“Novelis … will establish a new organisation for the procurement of used beverage cans (UBCs) in North America. The announcement follows the company’s decision to withdraw from its Evermore joint venture with Alcoa effective August 31,2012,” Novelis said in a statement.

In 2009,the two companies had set up the joint venture,Evermore,in which Novelis had a majority 55.8 per cent stake.

“This move is in line with our global strategy to enhance our scrap procurement and recycling assets to support our goal of achieving 80 per cent recycled content in our products by 2020,” said Derek Prichett,Vice President,Global Recycling for Novelis.

“The ability to independently control our assets and manage our business will provide us with more flexibility to execute our strategic plans. This is the primary driver behind our exit of Evermore,” he added.

Novelis buys around 40 billion cans a year worth around USD 1 billion. The company expects its global consumption of UBCs to grow to more than 60 billion cans by 2015.

“Novelis will procure all UBCs for its recycling plants in Greensboro,GA,Berea,KY,and Oswego,NY,directly through the new organisation,” it said.

Chris Anderson,supply chain manager for Evermore,will rejoin Novelis effective August 1,2012,to lead the company’s new UBC procurement organisation.

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