Novelis Europe to cut production capacity in some sectors

The company also announced it is to raise the conversion prices of all its aluminium flat-rolled products by up to 10% depending on the exposure to the rising costs of energy, alloys and various operating materials.

It said the price increase responds to the “dramatic rise” in input costs of electricity, gas, oil and related materials, as well as alloying elements.

The increase is effective for new orders with delivery after 31 August, if not covered by an existing contractual agreement.

Arnaud de Weert, president of Novelis Europe, said: “The steep increase in our energy and other material costs requires us to take this action as we need to mitigate the impact of rising costs on our business. We will be talking to our customers about the specific details for their markets.

“We will continue to improve our production and energy efficiencies and aggressively pursue cost reduction initiatives across our manufacturing system to ensure our long-term competitiveness,” said de Weert.

Novelis Inc. operates in 11 countries, employs 12,700 people and reported annual revenues of $11.2bn (£5.7bn) in its 2008 fiscal year.

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