Novelis
Encyclopedia
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 is, “To make the world lighter, brighter and better.”

About Novelis

With operations spanning 11 countries and nearly 11,000 employees, Novelis is the world’s largest producer of rolled aluminum sheet. 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. 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 AB Inbev, Ball
Ball
A ball is a round, usually spherical but sometimes ovoid, object with various uses. It is used in ball games, where the play of the game follows the state of the ball as it is hit, kicked or thrown by players. Balls can also be used for simpler activities, such as catch, marbles and juggling...

, Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...

 bottlers, and Rexam
Rexam
Rexam PLC is a global consumer packaging company headquartered in London, United Kingdom. It is the largest manufacturer of beverage cans in the world and a leading producer of plastic packaging...

. Automotive companies such as Audi
Audi
Audi AG is a German automobile manufacturer, from supermini to crossover SUVs in various body styles and price ranges that are marketed under the Audi brand , positioned as the premium brand within the Volkswagen Group....

, BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...

, Ford, Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...

, and Jaguar
Jaguar
The jaguar is a big cat, a feline in the Panthera genus, and is the only Panthera species found in the Americas. The jaguar is the third-largest feline after the tiger and the lion, and the largest in the Western Hemisphere. The jaguar's present range extends from Southern United States and Mexico...

 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
Lithography
Lithography is a method for printing using a stone or a metal plate with a completely smooth surface...

, 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
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...

, Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...

, and Sao Paulo
São Paulo
São Paulo is the largest city in Brazil, the largest city in the southern hemisphere and South America, and the world's seventh largest city by population. The metropolis is anchor to the São Paulo metropolitan area, ranked as the second-most populous metropolitan area in the Americas and among...

, 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.

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.

Corporate Social Responsibility

Novelis and its employees contributed more than $2.3 million in charitable giving in FY2011. CSR initiatives and contributions are focused in three areas: extending our commitment to safety into local communities, supporting math and science education and aluminum recycling activities. In FY2011, Novelis employees worked 2,437 volunteer hours.

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
Aditya Birla Group
The Aditya Birla Group is an Indian multinational conglomerate corporation headquartered in Mumbai, India. It operates in 33 countries with more than 133,000 employees worldwide...

, a $30 billion conglomerate based in Mumbai.
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