Novelis Invests €43M: GPS Wagons to Slash Emissions

Aluminium giant Novelis is investing €43 million in 220 new, GPS-equipped Shimmns railcars to enhance its European logistics network and slash carbon emissions. This strategic fleet modernization aligns with a surging global market for sustainable aluminium, particularly in packaging, which is forecast to grow from $46 billion in 2025 to over $72 billion by 2035.

Novelis, a world leader in aluminium rolling and recycling, has announced a significant €43 million investment to purchase 220 new Shimmns wagons, reinforcing its commitment to rail-based transport, which already constitutes 95% of material movement between its ten European production sites. The first 30 units of the order have been delivered, with an official handover ceremony held on December 2, 2025, at the DUSS terminal in Göttingen, Germany. The full fleet, supplied by Mettmann-based On Rail, is scheduled to be operational by September 2026, marking a major step in the company’s efforts to expand and modernize its rail logistics.

The new Shimmns wagons represent a substantial operational upgrade. Unlike the leased wagons they are set to replace, which were often limited to a single material type, these versatile railcars can transport a mix of aluminium coils, scrap, and ingots. They are equipped with tarpaulin covers to protect weather-sensitive freight and, crucially, feature built-in GPS trackers. This digital integration provides Novelis with unprecedented real-time visibility into its supply chain, enabling optimized material flows, better train utilization, and enhanced flexibility. “Thanks to built-in GPS trackers, we always know where each material delivery is currently located,” stated Roland Leder, Vice President of Supply Chain at Novelis Europe.

This investment is a cornerstone of Novelis’ broader sustainability and circular economy strategy, particularly its ‘3×30’ objectives to reduce greenhouse gas emissions. By increasing rail capacity, Novelis will shift more shipments from road to rail, specifically targeting the route between its Nachterstedt recycling plant and the Alunorf rolling mill in Neuss, Germany. This modal shift is projected to eliminate approximately 2,000 truck journeys annually, resulting in a 78% reduction in related CO₂e emissions. The move comes as demand for infinitely recyclable aluminium grows, with the global beverage can market alone—a key end-user—projected to expand at a 4.7% CAGR through 2035, driven by consumer preference for sustainable packaging.

Key Takeaways

• Major Logistics Overhaul: The €43 million investment in 220 owned wagons allows Novelis to replace a less flexible leased fleet, gaining greater control and efficiency over its European supply chain.
• Significant Decarbonization Impact: By enabling a modal shift from road to rail, the new fleet is expected to cut transport-related carbon emissions by 78% on key German corridors, removing 2,000 truck trips per year.
• Digital Fleet Management: The integration of GPS technology provides real-time tracking, enhancing logistical planning, improving asset utilization, and increasing supply chain resilience.

Editor’s Analysis

Novelis’ acquisition of a modern, digitally-enabled wagon fleet is more than a simple equipment purchase; it’s a strategic move reflecting a critical trend in industrial logistics. In an era defined by ESG commitments and volatile supply chains, major producers are increasingly seeking to own and control their transport assets. This investment provides Novelis with a direct lever to reduce its Scope 3 emissions, a key challenge for many manufacturers. Furthermore, the integration of GPS tracking transforms a traditional asset into a data-generating tool, paving the way for AI-driven optimizations in scheduling and predictive maintenance. For the wider rail freight industry, this signals a growing demand from high-value clients for smarter, more flexible, and environmentally-accountable transport solutions.

Frequently Asked Questions

How many new railcars did Novelis purchase?

Novelis purchased 220 new Shimmns-type wagons as part of a €43 million investment to expand its European rail logistics operations.

What is the primary environmental benefit of this investment?

The investment will facilitate a shift from road to rail transport, which is expected to eliminate around 2,000 truck trips annually and reduce associated CO₂e emissions by approximately 78%.

What advanced technology is featured in the new wagons?

The new Shimmns wagons are equipped with built-in GPS trackers, which provide Novelis with real-time location data for every material delivery, enhancing supply chain visibility and management.