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First half net loss for Novelis

Aluminum recycler Novelis has reported a net global loss of $60m (£39m) for the first quarter of its fiscal year, with lower metals prices partly to blame for lower revenues.

The company blamed the decrease on the higher costs associated with the start-up and support for new automotive finishing and recycling capacity.

Revenues were also down by 2% to $2.6bn for the first quarter compared with the same quarter last year $2.7bn.

This was blamed on lower than average metal prices and local market premiums.

A spokesman said the company had been re-engineering its UK plant at Latchford this year to boost its sustainable credentials.

“After a maintenance and upgrade shutdown by the end of June, the can body casting line has now restarted to our full satisfaction and delivers an enhanced performance. This will enable us to further increase our consumption of used beverage cans, especially originating from the UK market,” he said.

“Recycling remains a key focus of our operations, and we have achieved a 53% recycling content run-rate by the end of our FY15 fiscal year, as opposed to 33% in 2011 (global figures).

“We continue to look at selected, modest investments in our operations to release casting and recycling capacities, and still regard 80% recycling content as our long-term, aspirational target.”

The company says it is the world’s largest, operating in 11 countries with approximately 11,500 employees.

Chief executive Steve Fisher said: “We remain focused on the fundamentals of our manufacturing operations: growing our premium portfolio, managing costs and working capital, and driving operational excellence.”

In July, the latest Packaging Recovery Note figures showed that aluminium was struggling to meet UK recycling targets.

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