Novelis announces intent to leave Evermore

Novelis announces intent to leave Evermore

By Editorial Staff, Resource Recycling

Evermore Recycling, the joint venture UBC purchasing operation co-owned by aluminum giants Novelis and Alcoa, will no longer pair those two firms after a filing by Novelis revealed that company's intent to leave the shared endeavor.

According to a financial filing [1] made this week by Novelis, the world's largest rolled aluminum product maker, the company said that it intends to withdraw from Evermore Recycling, a UBC purchasing operation that it co-owns with the number two rolled aluminum product maker, Alcoa. Currently, Novelis owns a 55.8 percent stake in Evermore and Alcoa 44.2 percent.

Just because Novelis intends to leave the joint operation, it doesn't mean that Evermore will be no more, however. According to Kevin Lowery of Alcoa, that side of the joint venture is still committed to the UBC buying endeavor. "We have told Novelis that we think very highly of Evermore and we see the venture as very much supporting important recycling initiatives," said Lowery to Resource Recycling. "We've told Novelis we would welcome making Evermore wholly-owned by Alcoa. In the meantime, Evermore will continue to operate as the premier direct relationship for UBC procurement in the industry."

Though the agreement between the two companies runs for more than two and a half more years, Novelis is looking to end the arrangement before that time. "We have notified Alcoa of our intent to withdraw from the joint venture and we are in discussions with them regarding the timing and nature of that withdrawal," said Charles Belbin of Novelis to Resource Recycling. "Although our participation in the joint venture runs through the end of 2014, we are seeking to withdraw as soon as possible. In the meantime, Evermore Recycling continues to procure used beverage cans on behalf of Novelis. In that respect, it is business as usual for now."

Belbin says that the reasons behind the withdrawal were strategic in nature and that Novelis can reach its own internal goal of achieving 80-percent recycled content by 2020 "more effectively by sourcing UBCs independently of the joint venture. As such, Evermore is no longer the best business model for us in North America," Belbin said.

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