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AL CIRCLE

Novelis enhances in-house rail operations at its Scriba plant with state funding

EDITED BY : 4MINS READ

In a motion toward bolstering its infrastructure, the County of Oswego Industrial Development Agency (IDA) has secured a substantial $2.787 million grant from the New York State Department of Transportation's Passenger and Freight Rail Assistance Program (PFRAP). This grant, announced by Governor Kathy Hochul, is earmarked for rail enhancements at the Novelis plant located in Scriba, New York.

Novelis enhances in-house rail operations at its Scriba plant with state funding

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The allocation is set to facilitate crucial improvements within the Novelis facility, particularly in optimising rail operations. These enhancements entail realigning existing tracks and turnouts to accommodate longer railcars effectively. Additionally, a section of dormant tracks will be reactivated, streamlining the movement of railcars for increased efficiency.

Transitioning to sustainable solutions: The Novelis commitment

Novelis, an international leader in aluminium rolling and recycling, is poised to replace two high-emission railcar movers with more environmentally efficient alternatives. This initiative aligns with Novelis's steadfast commitment to sustainability, emphasising the adoption of low-carbon aluminium solutions. The overarching goal of this $3.5 million project is to significantly reduce reliance on conventional transportation methods, thereby curbing emissions and fostering a greener operational framework.

Economic implications and job creation

Beyond its environmental benefits, this endeavour is projected to yield notable economic advantages. By minimising the need for tractor-trailer transportation, predominantly sourcing aluminium from Canada, Novelis anticipates a reduction of approximately 5,000 loads annually. Moreover, the project is expected to generate four new employment opportunities while supporting the retention of over 1,200 manufacturing jobs within the Oswego area plant.

Commendations and collaborative endeavours

Acknowledging the pivotal role of this initiative, Austin Wheelock, CEO of the IDA, lauds it as a testament to Novelis's dedication to domestic aluminium production. "This project will provide Novelis the funding to invest in critical on-site infrastructure to keep more aluminium production domestic and ultimately help their sustainability and economic competitiveness here in Oswego County and as a company," he mentioned in a statement.

Assembly Minority Leader Will Barclay also extends commendations, emphasising the project's contribution to local infrastructure and employment retention. He stated: "Securing nearly $2.8 million in state funding for the Novelis Rail Enhancement Project provides a tremendous boost for the region's infrastructure and economy. With roughly 1,200 employees at its Oswego facility, Novelis has been a great partner in our local community."

"This major investment will help expand production to keep highly-skilled, high-paying jobs here at home. I was proud to lend my support in the effort to obtain state funding, and I want to congratulate all those involved in this important project," he added.

Statewide impact and collaborative efforts - Fortifying economic resilience

This funding allocation for the IDA and Novelis project represents one facet of a broader statewide initiative. With nearly 40 projects totalling over $111.1 million, this marks the largest announcement in the Passenger and Freight Rail Assistance Program's (PFRAP) history. Administered by the New York State Department of Transportation, this program underscores investments aimed at bolstering freight movement, enhancing service reliability, and fostering economic development, particularly in upstate regions.

Nick Canale, Chair of the IDA, underscores the significance of state support in bolstering the Oswego County economy. "The County of Oswego IDA welcomed the opportunity to assist Novelis, a longtime partner, on this important project. We thank New York State for approving this grant, which benefits the Oswego County economy through the employees at the Novelis plant and the hundreds of local businesses they directly and indirectly support," Canale illustrated.

Cementing Novelis's global position as a sustainable aluminium producer

In conclusion, the collaboration between the IDA, Novelis, and state authorities underscores a collective commitment to sustainable economic development. As Novelis embarks on this journey to revitalise its infrastructure, the transition towards low-carbon aluminium production solidifies its position as a global leader in sustainable manufacturing practices. This strategic investment not only enhances operational efficiency but also underscores Novelis's steadfast dedication to environmental stewardship and economic resilience.

If you are interested in learning more about international aluminium trade dynamics, please have a look at AL Circle's specially curated report, Global Aluminium Industry Outlook Report 2024

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