Novelis Inc will invest 11 million Euro (US$17.2 million) to expand production capacity at its plant in Nachterstedt, Germany, in response to growing demand in the automotive and beverage can end markets in Europe.

The investment will increase the output and flexibility of the plant's continuous annealing and lacquering line. The additional finishing capacity will become available during the first quarter of 2009.

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Issue: May 2008


Novelis to Increase Aluminum Sheet Capacity for Fast-Growing Automotive and Can Markets in Europe



by Steve Barclay

Novelis Inc will invest 11 million Euro (US$17.2 million) to expand production capacity at its plant in Nachterstedt, Germany, in response to growing demand in the automotive and beverage can end markets in Europe.

The investment will increase the output and flexibility of the plant's continuous annealing and lacquering line. The additional finishing capacity will become available during the first quarter of 2009.

"This strategic expansion supports our European can customers' growth and enhances our offering to automotive clients," said Martha Finn Brooks, president and chief operating officer for Novelis. "Novelis' innovative lightweight automotive solutions are helping car makers to improve the carbon footprint and performance of their vehicles, which is leading to increased usage of aluminum sheet in cars," she added.

The region's beverage can market is growing strongly, particularly in Central and Eastern Europe. The investment will enable Novelis to meet customers' increased need for can end capacity. Novelis is the leading supplier of aluminum sheet to the global beverage can market and operates the first dedicated aluminum can recycling plant in Europe. The company's activities include successful recycling collection programs with customers and other supply chain partners.

Erwin Mayr, president of the company's Advanced Rolled Products division in Europe, added: "This investment builds Novelis Europe's unique dual supply capability for both automotive and can end products. For automotive, the combined unrivalled capability of our Nachterstedt and Sierre (Switzerland) plants will be significantly expanded. For can end, the investment will give us dual-route capability at Nachterstedt and Gottingen (Germany), allowing increased security, flexibility and production capacity."

The Nachterstedt plant has unique manufacturing capabilities with specialized cold rolling, continuous heat treatment and surface finishing, enabling supply of high quality products to automotive, beverage can and various industrial markets.

Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The company operates in 11 countries, employs approximately 12,900 people and reports annual revenues of more than US$11 billion. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial and printing markets throughout North America, South America, Europe and Asia. Novelis is a subsidiary of Hindalco Industries Limited, Asia's largest integrated producer of aluminum and a leading copper producer. Hindalco is the flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. For more information on Novelis, visit

www.novelis.com.

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