The Economictimes
Aditya Birla Group plans to relocate UK Aluminium foil mill to India
Edited by : AL CIRCLE
2 min read
The Aditya Birla Group plans to shut part of its aluminum foil making mill in the UK and relocate the plant to its unit near Nagpur. The move is aimed to crack the whip on unviable units in the European market, which are currently grappling with oversupplies and high energy costs.
The Bridgnorth facility of Novelis, which is a subsidiary of group flagship Hindalco Industries, employs about 300 people and makes foil packaging products for the food and beverages industry.
It has been facing problems due to overcapacity in European foils space and increased competition from manufacturers in low-cost countries that has affected its profitability.
Novelis is the world leader in aluminum rolling and produces nearly 20% of the world's flat-rolled aluminum products used in consumer goods, cars and aircraft.
"Every factory has to be profitable and has to justify its existence. There can be no subsidies," said Hindalco managing director Debu Bhattacharya, who is also vice-chairman of Novelis.
He didn't specify on Bridgnorth's financials. Part of the Bridgnorth facility will be relocated to Hindalco's unit at Mouda near Nagpur where foils for packaging for food will be made. This is the second time that Hindalco has shut down a European unit and relocated the plant to India.
In 2011, the company shifted plant and machinery from its beverage can-making facility at Rogerstone in the UK to Hirakud in Orissa. "There are advantages in doing this. I save on time as it takes 2-3 years to build a similar plant in India. I also save on cost. I need cash now. I don't want to spend on equipment right now," said Bhattacharya.
Novelis is the world's largest maker of cans. The move is also similar to cost-cutting measures adopted by yet another Indian major Tata Steel, which has a large presence in the UK through Corus.
Between 2010 and 2011, the Jamshedpur-based steelmaker mothballed units in the UK, which cut about 1,500 jobs. Although highly unpopular, the measures by Tata Steel and the Aditya Birla Group have been widely believed to be necessary as general slowdown has affected European markets and have turned some units unviable.
The Bridgnorth facility of Novelis, which is a subsidiary of group flagship Hindalco Industries, employs about 300 people and makes foil packaging products for the food and beverages industry.
It has been facing problems due to overcapacity in European foils space and increased competition from manufacturers in low-cost countries that has affected its profitability.
Novelis is the world leader in aluminum rolling and produces nearly 20% of the world's flat-rolled aluminum products used in consumer goods, cars and aircraft.
"Every factory has to be profitable and has to justify its existence. There can be no subsidies," said Hindalco managing director Debu Bhattacharya, who is also vice-chairman of Novelis.
He didn't specify on Bridgnorth's financials. Part of the Bridgnorth facility will be relocated to Hindalco's unit at Mouda near Nagpur where foils for packaging for food will be made. This is the second time that Hindalco has shut down a European unit and relocated the plant to India.
In 2011, the company shifted plant and machinery from its beverage can-making facility at Rogerstone in the UK to Hirakud in Orissa. "There are advantages in doing this. I save on time as it takes 2-3 years to build a similar plant in India. I also save on cost. I need cash now. I don't want to spend on equipment right now," said Bhattacharya.
Novelis is the world's largest maker of cans. The move is also similar to cost-cutting measures adopted by yet another Indian major Tata Steel, which has a large presence in the UK through Corus.
Between 2010 and 2011, the Jamshedpur-based steelmaker mothballed units in the UK, which cut about 1,500 jobs. Although highly unpopular, the measures by Tata Steel and the Aditya Birla Group have been widely believed to be necessary as general slowdown has affected European markets and have turned some units unviable.
Previous article
Tongliao City Formed Four Complete Industrial Chains
Next articleDemand in Global Aluminum Extrusion Market will Double in 2020
Grow with
AL Circle
