Novelis, a US-based packaging giant, has commenced expanded aluminum rolling operations in Pindamonhangaba, Sao Paulo, Brazil with an investment of $340m.
The move enables Novelis to expand the production capacity of the plant by more than 50% to over 600,000 metric tons of aluminum sheet per year.
Novelis deployed a third cold rolling mill, a new ingot casting center and a new pusher furnace for the hot rolling mill in the plant.
The plant also features an aluminum recycling center, which is said to be the largest across South America.
Novelis South America president Tadeu Nardocci said that this investment strengthens their position in markets including beverage cans and aluminum packaging.
"Looking ahead, it will also allow Novelis to explore new opportunities in South America in markets such as automotive," Nardocci added.
"The new Brazilian automotive regulation, Inovar-Auto, set reduction targets for CO2 emissions that will require automakers to produce lighter, more fuel efficient vehicles in the future."
Novelis president and CEO Phil Martens said that with this expansion, the company is expected to meet the demand for aluminum flat rolled products in South America for the next decade.
"We are expanding our recycling operations, increasing the use of post-consumer aluminum scrap and accelerating the development of new alloys that contain a greater percentage of recycled content," Nardocci added.
"These changes are aligned with our sustainable business strategy including our aggressive global target to reach 80 percent recycled content in our products by 2020."
