HAMBURG Nov 26 U.S.-based rolled aluminium
products group Novelis said on Monday it is building a
200 million euro ($259 million) aluminium recycling plant in
Completion of the plant, in Nachterstedt in Saxony-Anhalt in
east Germany is scheduled for 2014, it said.
The plant will produce 400,000 tonnes of new aluminium
ingots annually using scrap including drinks cans, cables, wires
and industrial waste, said Tadeu Nardocci, head of Novelis'
European unit. Some 200 new jobs will be created.
The metal produced will largely go to the giant Alunorf
rolling mill in Germany which produces 1.5 million tonnes of
rolled aluminium annually and is jointly owned by Novelis and
Hydro Aluminium, part of Norwegian group Norsk Hydro.
Novelis remains confident that European aluminium demand
will continue to grow in 2013 and beyond despite the euro zone
debt crisis partly because the metal continues to gain market
share because of its lightweight energy-saving properties,
He said the new Nachterstedt plant would provide a step
forward in the company's strategy of using 80 percent recycled
aluminium in its output by 2020, currently the level is about 30
Germany's aluminium industry has been struggling in the face
of the country's high electricity prices, with the future of
several plants in doubt.
But aluminium recycling only uses about 5 percent of the
energy needed for primary aluminium production from concentrates
so high energy prices were not a handicap for the plant's German
location, Nardocci said.
Novelis is a unit of Indian group Hindalco Industries