Alcoa takes full ownership of Evermore Recycling
Aluminium producer Alcoa has reached an agreement with Novelis that will see it take full control of America’s leading used beverage can (UBC) recycling company.
Alcoa will take over the Evermore Recycling joint venture from 31 August 2012. Both Alcoa and Novelis were partners in the joint venture, which purchases more recycled cans than any other group, anywhere in the world.
As a result of the new agreement, Alcoa will take over full ownership and operation of Evermore Recycling and make it part of its Global Packaging group. Evermore Recycling will continue to be based in Nashville, Tennessee. Employees of the joint venture are being given opportunities to join the respective companies.
Novelis, meanwhile, has announced plans to establish a new organisation for the procurement of used beverage cans (UBCs) in North America.
The company claim that it will make Novelis the largest UBC buyer in the region. Novelis will procure all UBCs for its recycling plants in Greensboro, Georgia; Berea, Kentucky, and Oswego, New York, directly through the new organisation.
Andrey Donets, president of Alcoa Global Packaging, said: “Alcoa’s Evermore Recycling is known throughout the world for its strong and committed relationships across the recycling supply chain and for its ability of making it easy to work together effectively. When the opportunity first presented itself, we immediately said we wanted Evermore. We are confident the strong relationships we have in the scrap market will grow even stronger as we take over full control of the company.
“We’ve been a leader and pioneer in recycling since the aluminium can was invented and we see great opportunities in this new chapter to deepen our rich heritage in recycling.”
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.
“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,” says 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.”
Chris Anderson, currently supply chain manager for Evermore, will rejoin Novelis and lead the company’s new UBC procurement organisation.
