Novelis is strengthening its European logistics network with a EUR 43 million (USD 50.4 million) investment aimed at shifting more aluminium transport from road to rail. The company has purchased 220 new Shimmns railcars as part of its long-term sustainability strategy built around the principle of “rail instead of road.” Rail already accounts for 95 per cent of material movement between Novelis’ 10 European sites, and the new fleet is designed to further reinforce that system.
Image source: Novelis
Explore- Most accurate data to drive business decisions with 50+ reports across the value chain
The Shimmns wagons add flexibility to Novelis’ network as they can carry aluminium coils, scrap and ingots — unlike the previously rented railcars that could handle only a single material type. This upgrade is central to the company’s plan to optimise transport between its facilities.
Boosting capacity between key German sites
With the additional railcars, Novelis expects to move more aluminium ingots by train from its recycling plant in Nachterstedt — the largest in Europe — to the Alunorf rolling mill in Neuss, an aluminium rolling operation.
Limited train capacity had previously forced some of these shipments onto trucks. The expanded rail fleet will enable the company to eliminate an estimated 2,000 truck trips each year and reduce CO₂e emissions by about 78 per cent.
Roland Leder, Vice President Supply Chain at Novelis Europe, said, “With this investment, we are laying the foundation for even more efficient and environmentally friendly logistics,” he said. “The new railcars are expected to increase our flexibility, optimize material flows, and enable better utilization of the trains. Thanks to built-in GPS trackers, we always know where each material delivery is currently located.”
The first batch of 30 railcars has already reached Novelis, while the remaining units — supplied by On Rail Gesellschaft für Eisenbahnausrüstung und Zubehör mbH—are scheduled for delivery by September 2026. The first official handover took place on December 2, 2025, at the DUSS terminal in Göttingen.
Also read: Novelis advances Oswego plant restoration timeline, easing pressure on automakers
Novelis’ broader decarbonisation vision
The investment is tied directly to Novelis’ ongoing efforts to cut emissions across its operations through renewable energy, improved process efficiency and cleaner logistics. It also supports the company’s ‘Novelis 3×30’ initiative, which aims to reinforce aluminium’s role as a circular, low-carbon material. A central target of the programme is to lower CO₂e emissions to below 3 metric tons per metric ton of flat-rolled aluminium by 2030.
The rail expansion marks another step in Novelis’ move to reshape its supply chain around lower-emission transport while easing costs and improving material flow across its European network.
Must read: Key industry individuals share their thoughts on the trending topics
Responses
