Novelis Gains from Alcoa (NYSE:AA) Abandoning Aluminum Cans

Alcoa (NYSE:AA) is dropping out of the aluminum can business, at least they're going to produce much less, as in April they announced they were letting a 10-year contract expire which had been losing money.

Novelis, the American division of India-based Hindalco Industries, said they will become the largest producer of metal beverage cans in America as a result.

This would be under the flat-rolled segment of the company, which reduced shipments in the first quarter by close to 75,000 tons.

On the other hand, Novelis said they'll increase North American flat-rolled product by around 1.75 billion pounds of sheet. That would give them approximately 45 percent of the aluminum business used to make beverage cans. That's an increase of about 3 percent for Novelis.