Novelis Technology Achieves Breakthrough in Multi-Alloy Casting

Novelis Fusion(TM) Technology Enables First Commercial Production of Multi-

Alloy Aluminum Rolling Ingots

Jun 13, 2006, 01:00 ET from Novelis Inc.

    ATLANTA, June 13 /PRNewswire-FirstCall/ -- Novelis Inc. (NYSE:   NVL)
 (TSX: NVL), the global leader in aluminum rolled products, today unveiled
 Novelis Fusion(TM) technology, a new process that simultaneously casts
 multiple alloy layers into a single aluminum rolling ingot. This marks the
 first time that any company has achieved the commercial production of
 multi- alloy aluminum ingots.
     "This is a game-changing technology," said Brian Sturgell, president
 and chief executive officer of Novelis. "Engineers have tried for decades
 to cast multi-alloy ingots in a commercial environment. Novelis has now
 succeeded, demonstrating our ability to achieve -- and commercialize --
 significant innovations that will enhance existing markets and permit
 development of new markets."
     Novelis Fusion technology produces a high quality ingot with a core of
 one aluminum alloy, combined with one or more layers of different aluminum
 alloy(s). The ingot can then be rolled into a sheet product with different
 properties on the inside and the outside, allowing previously unattainable
 performance for flat rolled products and creating opportunity for new,
 premium applications.
     Conventional single-alloy products require customers to choose an alloy
 based either on the required core properties such as strength, or the
 desired surface characteristics such as corrosion-resistance. Novelis
 Fusion technology can satisfy both needs in the same product.
     "No longer will customers need to make trade-offs between core
 properties and surface properties in their aluminum sheet products," said
 Sturgell. "Now they can achieve the optimal combination of both. This
 technology positions Novelis to provide even greater support to our
 customers' success by helping them improve their current products and, more
 importantly, to develop a new generation of products with superior
     Previously, multi-alloy aluminum sheet products were achievable only
 through a low-tech, high-cost, manual ingot-cladding process and were
 limited to a small range of alloys. The new Novelis Fusion technology
 produces a perfect metallurgical bond between the alloy layers and permits
 alloy combinations never before possible in aluminum rolling. Novelis has
 filed patents on this technology in countries worldwide.
     "Novelis Fusion technology adds a new level of flexibility on an
 industrial scale," said Thomas W. Eagar, Sc.D., professor of materials
 engineering and engineering systems at the Massachusetts Institute of
 Technology. "It is the most significant breakthrough in aluminum
 solidification since the introduction of direct chill casting in the
     The market potential for Novelis Fusion technology is with customers in
 industries such as automotive, architectural, building and construction,
 durable goods, electronics and transportation, to name a few. Examples of
 potential applications include:
      - Automotive sheet with both strength and improved formability to enable
        new design options.
      - Architectural applications with a superior surface finish and enhanced
      - Household appliances with a variety of attractive finishes and better
        dent resistance.
      - Underground pipes with maximum corrosion resistance combined with high
      - Rail cars with high load-carrying capacity and better wear resistance.
      - Electronics cases that are highly durable and provide a high-tech
      - Boat hulls with enhanced corrosion resistance without compromising
     Novelis Fusion entered into commercial production in March of this year
 at the company's rolling mill in Oswego, N.Y. Initial production capacity
 is 70,000 metric tons per year. Novelis has successfully cast hundreds of
 ingots of more than 50 different aluminum alloy combinations, and customer
 shipments of Novelis Fusion sheet products are under way.
     "We are in the process of transferring the Novelis Fusion technology to
 production centers in both Europe and Asia," said Sturgell. "This is an
 expandable technology, and we will grow our production capacity as demand
     Novelis is the global leader in aluminum rolled products and aluminum
 can recycling. The Company operates in 11 countries and employs more than
 13,000 people. Novelis has the unrivaled capability to provide its
 customers with a regional supply of technologically sophisticated rolled
 aluminum products throughout Asia, Europe, North America and South America.
 Through its advanced production capabilities, the Company supplies aluminum
 sheet and foil to the automotive and transportation, beverage and food
 packaging, construction and industrial, and printing markets. For more
 information, visit
     Statements made in this news release which describe Novelis'
 intentions, expectations or predictions may be forward-looking statements
 within the meaning of securities laws. Novelis cautions that, by their
 nature, forward- looking statements involve risk and uncertainty and that
 Novelis' actual results could differ materially from those expressed or
 implied in such statements. Important factors which could cause such
 differences include, but are not limited to: competitive factors, ability
 to consistently meet quality standards of Novelis Fusion(TM) technology in
 a commercial environment, ability to achieve the benefits described for
 multi-alloy sheet, ability to achieve market penetration in potential
 industries, uncertainties of potential litigation, achieving necessary
 patents on the Novelis Fusion technology, the Company's ability to meet
 Novelis Fusion sales forecasts, the Company's economic ability to install
 Novelis Fusion casting centers worldwide, the price of aluminum; global
 supply and demand conditions for Novelis Fusion products; demand and
 pricing within the principal markets for the Novelis Fusion products;
 changes in government regulations, particularly those affecting
 environmental, health or safety compliance associated with the Novelis
 Fusion; economic developments; relationships with (and financial or
 operating conditions of) customers and suppliers; competition from other
 aluminum rolled products producers as well as from substitute materials
 such as steel, glass, plastic and composite materials; the level of our
 indebtedness and ability to generate cash; and other factors relating to
 the Company's ongoing operations. The financial information provided in
 this news release was prepared by management and has not been audited.
 Reference should be made to Novelis' registration statement on Form S-4
 filed with the Securities and Exchange Commission for a discussion of other
 major risk factors.

SOURCE Novelis Inc.