News

Novelis, the aluminium rolling and can recycling firm, is to invest EUR11m (£8.7m) to expand production at one of its plants in Germany.

The firm said the investment would increase the output and flexibility of the Nachterstedt plant's continuous annealing and lacquering line, and meet growing demand in the beverage can end and automotive markets in Europe.

The additional finishing capacity will come on-stream during the first quarter of 2009.

The announcement comes after packaging steel-maker Corus said last week that it would need to reduce capacity by 150,000 tonnes at its tinplate operation in Trostre, South Wales, threatening 290 jobs. The firm blamed overcapacity and rising raw material costs in the steel sector.

However, Novelis said the aluminium beverage can sector was growing strongly in Central and Eastern Europe.

The Nachterstedt plant offers specialised cold rolling, continuous heat treatment and surface finishing for the production of automotive products and drinks cans.

Novelis supplies aluminium sheet to the global drinks can market and operates Europe's only dedicated aluminium can recycling plant in the UK at Warrington, Cheshire.

The firm employs around 12,900 people in 11 countries and has annual revenues of $11bn.