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 supplies.
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.