Novelis

Novelis

Type	Subsidiary
Industry	Metals, manufacturing, recycling
Founded	2005
Headquarters	Atlanta, GA
Area served	Worldwide
Key people	Phil Martens, (President and CEO)
Products	Aluminium
Revenue	$10.6 billion
Net income	$116 million
Employees	Nearly 11,000
Parent	Hindalco Industries
Website	www.novelis.com

Novelis Inc. is a global aluminum company. Headquartered in Atlanta, Georgia, Novelis produces 17 percent of the world’s flat-rolled aluminum products and is the global leader in recycling used beverage cans.

Novelis’s mission statement is, “To make the world lighter, brighter and better.”^{[citation needed]}

About Novelis

With operations spanning 11 countries and nearly 11,000 employees, Novelis is the world’s largest producer of rolled aluminum sheet.^{[citation needed]} The company serves customers in sectors including beverage cans, automotive, consumer electronics, construction and foil and packaging. Novelis produces approximately 17% of the world’s flat-rolled aluminum.^{[citation needed]} The company has 30 plants across the globe and divides its operations into 4 regions: North America, Europe, Asia, and South America. At present, demand for aluminum is increasing with the continued development of emerging nations, urbanization, and the increasing substitution of aluminum for other materials, making expansion of capacity and reach top priorities.

In its 2011 fiscal year (FY2011), Novelis shipped 2.7 million tons of aluminum and aluminum products. That same year it announced revenues of $10.6 billion, adjusted EBITDA of $1.1 billion, and a liquidity of $1.1 billion. In response to global demand for aluminum sheet for automotive, electronics and beverage cans, the company has announced capital investments including a $400 million expansion in Asia, a $300 million expansion in Brazil and $200 million expansion in North America.

Operations

With 54% of Novelis’s shipments going to the creation of beverage cans, the canning industry is by far its largest customer. Novelis has contracts to provide can-sheet with Anheuser-Busch Inbev, Ball, Coca-Cola bottlers, and Rexam. Automotive companies such as Audi, BMW, Ford, Mercedes-Benz, and Jaguar also purchase aluminum from Novelis. This accounts for 7% of Novelis’s shipments. 15 percent of sales go to foil and packaging, and a tenth to industrial uses. The remaining 21% are used in the transportation construction, lithography, and other assorted industries.

Novelis produces approximately 19% of the world’s flat-rolled aluminum. The company divides its operations into 4 marketing segments: North America, Europe, Asia, and South America. The regional headquarters are Atlanta, Zurich, Seoul, and Sao Paulo, respectively. Novelis also has operations in UK, Germany, France, and Luxembourg. At present, demand for aluminum is increasing with the continued development of emerging nations, urbanization, and the increasing substitution of aluminum for other materials, making expansion a key consideration.

Customers and shipments

In FY2011, 58% of Novelis’ shipments were for the creation of beverage cans, making it the company’s largest customer segment. Novelis is the world leader in the supply of beverage can stock and its customers include can giants such as AB Inbev, Ball, Coca-Cola bottlers, and Rexam. 9% of the company’s shipments were for the electronics and high-end specialties sector. Automotive companies such as Audi, BMW, Ford, Mercedes-Benz, and Jaguar also rely on Novelis as the world largest producer of aluminum sheet for applications such as car doors, hoods and vehicular structures. This accounted for 6% of Novelis’ shipments, and is expected to grow rapidly. 17% of shipments were for the foil and packaging industry and the remaining 10% was used for industrial products and other commercial applications.^{[citation needed]}

Sustainability

Because used beverage cans made of aluminum are infinitely recyclable, they are converted from one can to another in a closed loop. Novelis recycles approximately 40 billion aluminum cans annually. In the United States, the average time between the consumption of a beverage and the return of a new can to the store shelf is 60 days. Globally, Novelis’ can recycling efforts save the estimated energy equivalent of 13 million barrels of oil and avoid the production of 5 million metric tons of greenhouse gases (GHG).

The company recently announced a goal of obtaining 80% of its aluminum requirements from recycled sources by 2020. This will remove annually an estimated ten million metric tons of GHGs. Novelis also has goals to reduce GHG emissions by 2% annually, improve energy efficiency by 2%, reduce water usage by 4%, and reduce landfill waste generation by 6%. The company employs a Chief Sustainability Officer and will issue its inaugural sustainability report in 2011.

Company history

Novelis was spun off from Alcan Inc.'s rolling division and incorporated in January 2005. In 2007, the company was acquired by India's Hindalco Industries Limited for $6 billion. This makes Novelis a member of the Aditya Birla Group, a $35 billion conglomerate based in Mumbai, India.

References

• Novelis confirms sale talks; stock jumps 24% from Canadian Broadcasting Corporation News, January 26, 2007
• Hindalco to Buy Novelis for $6 Billion, Add Products
• India's Hindalco To Pay $6 Billion Including Debt For Novelis
• Novelis floats IT firm in India, first centre in Pune

External links

• Novelis web site