Recycling is the future strategy of Novelis
Valor Econômico
Novelis, the world's largest manufacturer of aluminum rolled products, such as plates for the manufacture of cans, has a challenge ahead, particularly in Brazil. With a project of expansion of the capacity in Pindamonhangaba, in the region of Vale do Paraíba, the company is concerned with the future supply of raw materials. A path, outlined globally, is to increase the use of recycled material. By 2020, the goal set is to achieve 80%.
In Brazil, Novelis already has 200 thousand tons of recycled aluminum a year, corresponding to half of the rolled products it produces. Most of the material comes from the collection of cans of beer and soft drinks, which are recast and turned into ingots. Brazil is the world leader in the recycling of the product, with more than 90%, which returns to the market in the form of new cans.
Worldwide, the company, former Division of rolled products of Alcan that was separated and sold in 2005, has 34% of the production made with recycled raw materials. The percentage was equivalent to1 million tons in the last tax year, ended in late March. With the race and the boom of the commodities, the company sees as strategic for the business the increase of the raw material from the recycled metal.
"From 2013 on we will have to seek new sources of supply in Brazil and the expansion of recycling is the main one", says Alexandre Almeida, President of Novelis in South America. The situation of the company worsens because, besides the ongoing expansion, last year had to be shutdown the foundry of Aratu (BA), which supplied more than 50 thousand tons of metal a year. "The cost of the energy of Chesf, above US$ 60 the MW/hour, caused the production of our plant not to be competitive".
Novelis was not the only to close the doors of a foundry. In early 2009, Vale also ended the activities of Valesul, in Santa Cruz (RJ). With that, the offer of metal to aluminum processors in the country fell to 150 thousand tons - 10% of the total that was produced a year. The expectation of the sector is that the country becomes, still next year, a net importer of aluminum. "In Ouro Preto, another Foundry we have, the production is only possible because we generate 60% of energy consumed", informs Almeida.
Therefore, this year Novelis foresees importing 40 thousand tons of metal - from Argentina and Venezuela - to complement the internal supply. From its own recycling and from Ouro Preto will come out 250 thousand. The difference will be acquired from domestic producers of aluminum, such as Alcoa and BHP Billiton. But with the growth of the companies, which will grow 50%, to 600 thousand tons, it will have to seek more material abroad.
The expansion of the roller of Novelis, known as Pinda, will receive investments of US$ 300 million. The work will be concluded by September 2012 and it goes into commercial stage in January 2013. Almeida says Brazil is no longer competitive due to the cost of energy for the industry compared to other countries. The investment, he says, is justified because the roller will gain in scale. The target is the market of packaging for beverages, which grows at two-digit rates a year and it should reach 25 billion cans before 2015. The company has 75% of the sales in that market.