Novelis invests $9M to increase aluminum production

CNY Business Journal (1996+), Aug 31, 2007 by Martino, Kristina

OSWEGO - The first phase of construction has begun on a company-financed $9 million Oswego plant upgrade for Novelis, Inc., a manufacturer of aluminum rolled products.

Novelis plans for construction completion by the second quarter of 2008. The upgrade will increase production of alurninurnsheet ingot, the starter stock for the rolling process, by 10 percent.

Thomas (Tom) Boney, Oswego works manager (plant manager), says the plant usually begins its aluminum production with a 24-to-36 inch ingot, a mass of metal cast into a convenient shape for storage, that is rolled down in size.

The upgrade includes the installation of a highly technical alurninum-melting furnace that Boney says will allow for faster production and greater energy conservation. Novelis works with a variety of local contractors to plan and conduct the construction.

Novelis' Oswego plant is the company's 1.5 million-square-foot aluminum fabrication facility that has the capability to recycle and remelt aluminum, ingot cast, and hot and cold roll. The company has not estimated the amount of energy the upgrade will save the plant.

The plant generates products for the automotive, appliance, beverage can, building and construction, commercial transportation, industrial, and printing markets in Asia, Europe, North America, and South America.

According to Novelis, each year the company invests roughly $15 million in improvements and upgrades to keep the Oswego plant current and competitive.

Boney says the construction is taking place inside the plant and that no additions will be made. The 700-employee staff will not experience many changes due to the upgrade.

"Our 700 employees will essentially stay the same, but we will have some small additions," Boney says.

He says that the project will benefit the plant in several ways. He says it combines several manufacturing processes into one. The new system will allow for safer methods of manufacturing molten metals. He also says the upgraded system will allow the company to conserve energy.

Novelis Inc., (NYSE: NVL) headquartered in Atlanta, Ga., operates in 11 countries, has about 12,900 total employees with revenue totaling $9.8 billion in 2006. Boney declined to disclose revenues for the Oswego plant.

According to the company's Web site, the Oswego factory produces more than 540,000 mettic tons of aluminum sheet each year.

Novelis is a subsidiary of Hindalco Industries Limited, Asia's largest integrated producer of aluminum and a leading copper producer.