Novelis: European demand for aluminum rolled products is strong
1-LVDCPN > 09-06-2018, 07:53 AM
NEW YORK (Reuters) - Demand for aluminum rolled products in Europe remains firm despite the sluggish economic growth in the region, according to European director of Novelis, the world's largest producer of aluminum rolled products in the United States.
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"For Europe, we see good demand in major markets like cans and cars," said Novelis senior vice president and president of Europe.
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"Favorable material substitution trends are driving demand growth, and vehicles and packaging are turning to aluminum," Braghi said.
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"Sustainability drives demand for aluminum as our customers are working to reduce weight, improve recyclability and increase the recyclability of their products."
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During the fiscal year ended March 2016, Novelis produced more than 3.1 million tonnes of flat rolled aluminum products, up 2% from the previous year.
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In Europe, the company operates in Germany, Italy, the UK, France and Switzerland both in production and recycling operations.
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This year the company by trial operation of its New York Oswego another rolling product line to significantly expand the US auto industry production capacity.
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"While beverage cans are still a core product in our portfolio, the car is our growth engine," Braghi said.
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We are continuing our discussions with many OEMs on future aluminum usage plans in their automotive production.
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"On a global basis, we expect double-digit growth in aluminum usage in the automotive sector by the end of the decade and we are optimistic that recent infrastructure investments will be able to meet European, North American and Asian demand," he said.
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In 2014, Novelis opened an aluminum recycling plant in Tesstead, eastern Germany, which produces 400,000 tonnes of aluminum annually through the use of scrap.
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"Plans are being made to increase the output of the Tristram recycling center," Braghi said.
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In his fiscal year 2016, Novelis increased its recoverable aluminum content to 53 percent from 33 percent in 2011, he said.
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As aluminum prices are still generally lower than in the first half of 2015, some scrap recyclers found it uneconomical to recycle scrap.
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"At Novelis, we do not yet have a shortage of scrap available," he said.
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This is partly due to supply diversification and closed-loop recycling agreements whereby Novelis can obtain scrap aluminum produced by its customers in their manufacturing process.