The company, currently, purchases the equivalent of 40bn cans a year at an estimated cost of $1bn. According to its forecast the number of used beverage cans to be consumed by the company will grow to 60bn by 2015.
Novelis Inc vice president of global recycling Derek Prichett said that the move to set up a new organization is in line with its strategy of enhancing its scrap procurement and recycling assets to achieve 80% recycled content by 2020.
"The ability to independently control our assets and manage our business will provide us with more flexibility to execute our strategic plans," added Prichett.
The announcement comes with the backdrop of Novelis’ impending withdrawal from the Evermore joint venture with Alcoa, which will end effective 31 August 2012.
