The new line will recycle painted scrap aluminium into the metal needed to produce rolled sheet.

It said in May it plans to increase the amount of recycled metal it uses in its rolling operations around the world from 34% today to 80% by 2020.

Emilio Braghi, general manager, Litho and Painted Value Stream, Novelis Europe said it was the company’s largest single investment in its Italian facilities in 12 years.

The Novelis plant at Pieve Emanuele is an integrated continuous casting, rolling and finishing operation. The aluminium sheet and coil produced at the facility is sold to distributors and end users in industrial and construction markets.

The Pieve plant is also the supplier of aluminium coil to the nearby Novelis mill at Bresso, where it is processed into pre-painted, textured and bright finish material for use in transport, construction and industrial applications. Applications include roofing, architectural cladding and domestic appliances.

The painted scrap generated during the production processes in the Italian operations, as well as other low-grade used aluminium from external sources, will be recycled into rolled aluminum on the new equipment.

The use of continuous casting technology also brings logistical advantages as a key production step is brought in-house, thus saving transport and other costs.

The investment at Pieve will also free up capacity where it is needed elsewhere in the Novelis Europe system to meet demand for other high-end products such as can body sheet and automotive sheet.

Installation of the new line, which will include a double-chamber melting furnace, continuous casting line and ancillary equipment, will be completed by the end of 2012.