* Annual output of 400,000 tonnes
* Scrap sourced throughout Europe
* Metal output partly replaces imports
HAMBURG, Oct 1 Novelis, a U.S.-based
manufacturer of rolled aluminium products, said it had opened a
$258 million recycling plant in Germany to process aluminium
scrap obtained throughout Europe.
The plant, in Nachterstedt in east Germany, will produce
400,000 tonnes of aluminium annually using scrap including
drinks cans, cables, wires and industrial waste, Novelis
President and Chief Executive Phil Martens told Reuters on
Good availability of scrap in Europe is a major reason for
locating the plant in Germany, he said. Full production should
be reached in January 2015.
"We will be sourcing scrap from just about everywhere in
Europe," he said, including Germany, Scandinavia, Spain, France,
Italy and Eastern Europe.
About 300,000 tonnes of the metal produced will go to the
giant Alunorf rolling mill in Germany, which produces about 1.5
million tonnes of rolled aluminium annually and is jointly owned
by Novelis and Norwegian group Norsk Hydro.
A further 100,000 tonnes will go to a Novelis plant in
The output will replace imports of aluminium metal and
purchases from traders and other third parties after closures of
European aluminium smelters have made the metal increasingly
difficult to source, Martens said.
He said the Nachterstedt plant would contribute Novelis'
strategy of increasing the percentage of recycled aluminium used
in making its products to 50 percent of output by the middle of
the decade and 80 percent by 2020, from the current level of
about 46 percent.
He described European aluminium demand as "stable" but said
the outlook would depend on whether the German economy continues
Novelis is a unit of India's Hindalco Industries.
(Reporting by Michael Hogan; editing by Jane Baird)