Novelis Reaches Strategic Logistics Agreement with MRS Logistica

SEATTLE (Scrap Monster): Atlanta-headquartered aluminum rolling and recycling major Novelis, Inc. announced that it has inked a strategic transportation deal with MRS Logistica- the Brazilian railway operator. The five-year contract will ease the transportation of rolled aluminum coils and recycled aluminum products from Novelis’ Pindamonhangaba plant in Sao Paulo, Brazil, by connecting the plant to MRS rail line.

The deal is part of the $175 million expansion plans announced by the company in November last year to expand aluminum production and recycling capabilities in Brazil. The expansion, supposed to create nearly 50 new jobs, also involves purchase of land for future potential growth and installation of new water sourcing system. The company expects to complete these expansions by 2021.

The expansions were aimed at boosting the aluminum production capacity at the Pindamonhangaba plant by 100 kilotonnes and recycling capacity by additional 60 kilotonnes, thereby bringing the total annual capacity of the plant to 680 kilotonnes of aluminum sheets and 450 kilotonnes of recycled aluminum metal.

Felipe Santos, supply chain director, Novelis, noted that the partnership to construct railroad terminal will diversify Novelis’ operations in transportation and logistics. The better access to the ports of Santos in Sao Paulo and Itaguaí, in Rio de Janeiro will help to improve the plant’s logistics system, he added.