SÃO PAULO Novelis
Inc. has decided to close an aluminum plate production line at
its Ouro Preto unit in Brazils Minas Gerais state.
"Novelis has restructured its
primary metal operation in Ouro Preto, dedicating its assets
exclusively to the manufacture of billet. As part of this
process, Novelis has reduced its level of activity of the
plant, maintaining just one of the production lines," the
Atlanta-based company said.
Plate production will be
transferred to the companys plant in Pindamonhangaba in
São Paulo state.
The decision was based on
structural issues in the aluminum market, especially the high
cost of electricity, according to Brazilian newspaper Valor
Econômico. With the closure of the production line,
annual capacity will drop to 30,000 tonnes per year from 50,000
tonnes, Valor said.
The plant, which took 35 percent
of its energy requirements from an electricity distributor,
aims to be more self-sufficient and rely more on captive power
The closure means the layoff of
127 of the plants 610 workers, AMM sister
publication Metal Bulletin understands.
A version of this article was first published by AMM sister
publication Metal Bulletin.