Alcoa to Buy Out Novelis Share in Recycling Joint Venture
07/16/2012| 03:33pm US/Eastern
--Alcoa says it will buy out Novelis's share of beverage-can recycling joint venture
--Deal to take control of Evermore Recycling is effective Aug. 31
--Evermore will become part of Alcoa's global packaging group
(Adds Alcoa saying Novelis decided to withdraw from joint venture in the fourth paragraph.)
U.S. aluminum producer Alcoa Inc. (>> Alcoa Inc.) will buy out Novelis Inc.'s share of their beverage-can recycling joint venture and assume full control of it, Alcoa said Monday.
The deal to take control of Evermore Recycling is effective Aug. 31 and will see the company become part of Alcoa's global packaging group.
Alcoa and Novelis have been partners in the joint venture, which purchases more recycled cans than any other group worldwide, since 2009.
Novelis decided to withdraw from the joint venture and the two parties negotiated to allow that to happen, Alcoa said. Novelis is a subsidiary of Hindalco Industries Ltd. (500440.BY).
Alcoa didn't disclose terms of the deal.
Evermore Recycling will continue to be based in Nashville, Tenn., and employees of the joint venture are being given opportunities to join the respective companies.
"We've been a leader and pioneer in recycling since the aluminum can was invented and we see great opportunities in this new chapter to deepen our rich heritage in recycling," said Andrey Donets, president of Alcoa global packaging.
The aluminum can is easily the most recycled container across the globe, and can be recycled into new cans in less than 60 days. Can recycling requires 95% less energy than cans using primary metal, a cycle which can be repeated indefinitely. Approximately 75% of all the aluminum produced since 1888 is still in use today.
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