Novelis plant slows production due to equipment break down

An important aluminium sheet manufacturer that catered to Coca-Cola Co. (KO) and MillerCoors LLC has been forced to slow down production after the 6,000-horsepower motor that drives the hot roller broke down last month on 29th December.

The hot roller was capable of flattening 25-ton blocks of aluminium. The break down of the machine will constrict the output till late January as repair works take place at the Russellville, Kentucky facility, the spokesperson of Novelis Inc. Fiona Bell said. Novelis Inc. partly owns the plant that is the largest aluminium-rolling mill in North America contributing 44% of the beverage-can sheets used in U.S.

Two of the largest beverage-can suppliers Rexam Plc and Ball Corp. get their aluminium sheets from Novelis, which are then fabricated for Coca-Cola and MillerCoors among others.

The reduced capacity at the plant has forced Novelis to shift some of the production to the plant at Oswego, New York, as well as importing sheets, said Bell.

Ball Corp. sporkesperson, Renee Robinson said that although the reduced capacity might affect the beverage-can industry in future, at present the company has the aluminium supply needed to meet the current requirements, while MillerCoors said the outage will not impact its operations.

Representatives from Rexam and Coca-Coal were unavailable for comment.