Beverage can made from 100% recycled aluminium under development, says Novelis CEO

By Joe Whitworth

- Last updated on GMT

Novelis Q1 results

Related tags Recycling

Novelis revealed they are working on a beverage can made of 100% recycled aluminium in their Q1 results conference call and described it as the “ultimate sustainable package.”

Evercan is currently under development at their innovation centre which opened in June in Georgia.

While discussing the Q1 2013 results, Philip Martens, Novelis president and CEO, said the firm is looking to take their innovations in automotive aluminium into beverage cans.

This required a new mindset, breaking down the barriers that have existed for decades. Evercan has a revolutionary single alloy with a can body and can end which would make it easier to…and recycle time and time again.

“While we are still working on this product to ensure that we can produce it in an effective and cost efficient manner we are confident that it is these types of innovative solutions and customer partnerships that will continue to drive our success going forward​.” 

Novelis reported sales for the quarter of $2.6bn, down 16.1%, attributed to a decrease in volumes and a $626 per ton fall in average aluminum prices.

Targeting Brazil

Martens said the Brazilian recycling expansion is expected to come online at the end of 2013 to support their growing needs in the region.

“Our rolling expansion in Brazil which will add an incremental 220 kilo tonnes of capacity is on track to come online later this year.

“We are planning to start the commissioning process at the end of the year and expect to see a meaningful contribution from this capacity in our fiscal 2014 results.

“This expansion is coming at the perfect time ahead of Brazil’s 2014 World Cup and 2016 Olympics which will drive significant beverage consumption in the region.”

Net income was $91m, up 18.1% for the period ending 30 June 2012 as the firm divested three European foil plants and announced the exit from their Evermore recycling venture with Alcoa. 

Geographic outlook

“In North America we had production issues that were resolved and we are currently operating at capacity. In addition we have been able to more than offset the loss of can volumes reflected in our first quarter results through higher shipments and specialty products,” ​said Martens.

“In Europe we have also addressed our supply chain issues and are operating at near capacity levels we have seen improving demand across…all of our product categories with particular strength in cans and automotive demand.”

Despite continued economic turmoil in Europe, key end markets are expected to remain resilient, due to minimal exposure to the southern European economy, said Martens.

“In South America we have experience very consistent results quarter after quarter driven by a recession resistant product mix. And while Brazil’s GDP forecast has decreased we are still confident in the consumption trends we see in the region and in our long term growth outlook,” ​he added.

“In Asia we are starting to see a slight recovery in Korea and the broader Asian regions particularly in canned sheet demand.”

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