Metal Exchange Corporation (MEC), headquartered in St. Louis, MO, is forming a new joint venture with Novellini Industries Srl in Mantova, Italy. Called novALmec, the newly formed company will supply aluminum billet capacity to the European market.
“With this being our first investment in an overseas manufacturing facility, the selection of our partner was crucial,” said Mike Lefton, chairman and CEO of MEC. “With both companies being privately held, second generation family owned businesses with identical shared values of safety, integrity, and respect, it seemed like the perfect fit.”
MEC brings into the venture its worldwide procurement network in aluminum scrap markets, four decades of expertise from its billet casting facilities in the U.S., and strong billet sales and marketing capability. Novellini is contributing its 22,000 tonne state-of-the-art foundry to the joint venture for the production of secondary aluminum billets, including its upstream scrap processing facility and a solid base load demand.
The newly formed venture will expand the existing casting facility to 33,000 tonnes with the added production scheduled to come on stream early 2020. “The combined capability that the partners bring to novALmec along with the expanded capacity provides a strong supply offering to serve our current and potential customers,” said Friedhelm Grobler, managing director of Metal Exchange International-Zurich.
Rick Merluzzi, president and chief operating officer of MEC, added, “This is an important investment to strengthen MEC’s European market position and it is part of our overall global strategy. This investment along with the recent opening of our Singapore office, and our existing offices in Zurich, Shanghai, and St. Louis strengthens our global footprint.”