Novelis announced that it will establish a new organization for the procurement of used beverage cans (UBCs) in North America that will make the company the largest UBC buyer in the region. The announcement follows the company's decision to withdraw from its Evermore joint venture with Alcoa effective August 31, 2012.
Novelis will procure all UBCs for its recycling plants in Greensboro, GA, Berea, KY, and Oswego, NY, directly through the new organization.
"This move is in line with our global strategy to enhance our scrap procurement and recycling assets to support our goal of achieving 80% recycled content in our products by 2020," said Derek Prichett, Vice President, Global Recycling for Novelis. "The ability to independently control our assets and manage our business will provide us with more flexibility to execute our strategic plans. This is the primary driver behind our exit of Evermore."
As the leading recycler of UBCs in North America and the world, Novelis currently buys the equivalent of 40 billion cans a year, worth an estimated $1 billion. Novelis expects its global consumption of UBCs to grow to more than 60 billion cans by 2015.
Chris Anderson, currently supply chain manager for Evermore, will rejoin Novelis effective August 1, 2012, to lead the company's new UBC procurement organization reporting to Silverio Colalancia, Director of Recycling, Novelis North America. In addition, the company anticipates that a number of current Evermore employees will join its new Atlanta-based organization, which will include buyers in strategic locations throughout North America.
Novelis will continue to receive UBCs in North America exclusively through Evermore until August 31.