Novelis to Invest $300 Million to Expand Brazil Aluminum Operations

May 27, 2010 -- Novelis Inc. (NVL) said Thursday that it will invest around $300 million to expand its aluminum-rolling operations in Pindamonhangaba, Brazil, in response to the growing demand for its products in South America.

The company will expand its Brazilian plant's capacity by more than 50% to over 600,000 metric tons of aluminum sheet a year, it said in a statement.

Novelis, a unit of India's Hindalco Industries Ltd. (500440.BY), will add a cold-rolling mill to two existing ones as well as a new ingot casting center, and a new pusher furnace for its hot-rolling mill, with the expanded facilities expected to go onstream in late 2012, it said.

"We are experiencing strong demand for our products in South America, particularly for beverage can sheet," President and Chief Operating Officer Phil Martens said.