Brazilian can demand prompts $50m Novelis investment

By Ben Bouckley

- Last updated on GMT

The humble beverage can is riding high in Brazil, and it's success spurred Novelis' investment
The humble beverage can is riding high in Brazil, and it's success spurred Novelis' investment
The world's largest producer of rolled aluminium, Novelis, has announced plans to invest around $50m to install a coating line for beverage can end stock at its site in Pindamonhangaba, Brazil.

Novelis CEO and president, Phil Martens, said: "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."

Announcing the investment, Novelis said it expected demand for aluminium beverage cans in the region to grow by seven per cent year-on-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,"​ Marco Palmieri, president of Novelis South America.

"The new line will allow us to increase our capacity to meet customer demand while shortening delivery lead times."

Novelis said it expected its new coating line (fully integrated with in-line levelling and trimming) to begin operating in late 2013; the line will have the capacity to process 100,000 metric tons of aluminum sheet per year.

The Pindamonhangaba site is an integrated aluminum rolling and recycling complex located in the state of Sao Paulo. Novelis is currently investing $300m on expanding the facility's rolling mill and is also spending $32m on expanding its aluminum recycling capacity.

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