Novelis Inc. will roll out a closed-loop recycling system at
its Oswego, N.Y., facility over the next 12 months to cater to
its automotive customers as the company looks to make the auto
sector 65 percent of its business.
Novelis is moving away
from the "outdated linear model" of aluminum sheet
production and adopting a closed-loop model to meet its 2020
goal of having a recycled content of 80 percent in its
products, Novelis president and chief executive officer Philip
Martens said at AMMs Aluminum Summit in New
company has reconfigured its automotive supply chain with
customers like Jaguar-Land Rover Automotive Plc in Europe, so
the "casting" step of the model is moved further downstream to
be more closely integrated with customer requirements, Martens
"Typically in an
aluminum sheet-stamping operation there is 50-percent scrap. We
used to sell that to scrap dealers, but we now collect that,
put it in the same container that delivered the coil and send
it back to our facilities, where it is recast into sheet," he
closed-loop model will begin production at Oswego in the next
12 months and will operate 24/7, Martens said.
"The automotive OEMs
(original equipment manufacturers) are ensured of a steady,
reliable supply of high-value automotive sheet. We want to
increase end-of-life recycling for the auto industry, and
weve found an extremely receptive audience there," he
As the model is being
equally applied to the beverage can market, Martens said the
company has already had its recycled content boosted by its
withdrawal from the Evermore Recycling LLC joint venture in
Nashville, Tenn., with Pittsburgh-based Alcoa Inc. last year
amm.com, July 16, 2012).
Novelis passed the
43-percent mark on recycled content at the end of its fiscal
year in March (
amm.com, May 14) and is poised to make further
progress as it continues its push into automotive, Martens
"Right now about 65
percent of our business is UBC (used beverage cans), 28 percent
is other, and 6 percent is auto. Going out to 2020,
65 percent of our business will be auto and 30 percent will be
can. By then we should be able to make a 100-percent recyclable
can, and we may be able to make 70-percent recycled content
automotive sheet, and that gets you to 80-percent total
recycled content," he said.
Martens said the
company will be bringing a version of its Evercan product to
the market in "the next couple of months to a year," having
first unveiled the prototype of a 100-percent recyclable
beverage can at last years Aluminum Summit (
amm.com, June 12, 2012).
"This will be a
90-percent recycled content can body sheet, which enables
beverage can companies that package beer, soda, water to use a
guaranteed 70-percent recyclable container," he said.
Martens was also
pleased with the progress the company has made toward its
80-percent recycled content goal.
"When we made that
commitment publicly, virtually no one believed us, and those
that did looked at the negative implications for the industry.
Some people laughed at the thought as they didnt think it
was possible or viable, while others thought it would ruin the
aluminum market for the rest of us. Neither of these statements