Approximately 105 employees will transfer to Discovery Foils along with the assets of the business. Novelis will provide aluminium foil to the operation under a supply agreement.

The business produces multi-coloured printed foil used as packaging for confectionery products. The operation is associated with the Bridgnorth aluminium foil rolling and laminating activities that Novelis previously announced would cease operations by the end of April 2011.

Novelis is closing its Bridgnorth foil rolling and laminating operations and will consolidate most of the business into its other European operations.

It said the move will improve the competitiveness of the company's European foil and packaging production systems in response to overcapacity and increased competition from manufacturers in low-cost countries. The decision will impact 200 employees.