Novelis is to plough US$175m into its Pindamonhangaba plant, in the Paraíba Valley between Sao Paulo and Rio de Janeiro.

The expansion of the company’s flagship facility in South America will bolster capacity with 100 kilotonnes of additional rolling production and 60 kilotonnes of increased recycling. These expansions will bring total capacity of the Pindamonhangaba facility to around 680 kilotonnes per year of aluminium sheet and 450 kilotonnes annually of recycled metal.

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The investment also includes a new water sourcing system and the purchase of around 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,” said Novelis president and CEO, Steve Fisher.

Construction on the expansion to the Pindamonhangaba plant will start in February next year and are expected to be complete in 2021. The project includes an increase in sheet ingot, hot mill and recycling production and complementary improvements. The project should create more than 50 new jobs.

“Sustainability is the backbone of our business model and this expansion project is fully aligned with this vision,” said Novelis South America president, Tadeu Nardocci.

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“Pindamonhangaba plant is already the largest centre of rolled products and aluminium recycling in South America. With this expansion, Novelis solidifies its leadership position and creates new opportunities to offer innovative solutions to its customers.”

Novelis will have the support of Investe SP, a Sao Paulo Agency for the Promotion of Investments and Competitiveness.