Novelis to inject USD 175 million to expand aluminium production in Brazil
Hindalco Industries Tuesday announced that its wholly-owned subsidiary Novelis will pump in USD 175 million to expand aluminium production and recycling capabilities in Brazil.
"Novelis Inc, the world leader in aluminium rolling and recycling, today announced an investment of USD 175 million at its Pindamonhangaba plant, located in the Paraiba Valley between Sao Paulo and Rio de Janeiro," it said in a filing to BSE.
The expansion of the company's facility in South America will benefit its beverage and speciality customers by bolstering capacity with 100 kilotonnes of additional rolling production and 60 kilotonnes of increased recycling.
"These expansions will bring the total capacity of the Pindamonhangaba facility to approximately 680 kilotonnes per year of aluminium sheet and 450 kilotonnes annually of recycled metal," it said.
The investment also includes a new water sourcing system and the purchase of approximately 90 acres of land for potential future growth.
"This investment in additional rolling and recycling capacity further strengthens our commitment to the South American region and better positions us to meet our customers' needs," Steve Fisher, President and Chief Executive Officer, Novelis Inc said.
Construction on these expansions to the Pindamonhangaba plant will officially begin in February next year and are expected to be completed in 2021.
"The project includes an increase in sheet ingot, hot mill and recycling production and complementary improvements," the company said.
The project should create more than 50 new jobs, the company added.
(With inputs from agencies.)