Novelis Invests €43M in 220-Wagon Fleet to Decarbonize European Aluminum Logistics

GÖTTINGEN, GERMANY – Aluminum giant Novelis is making a strategic €43 million investment to acquire a new fleet of 220 Shimmns-type rail wagons, a move set to eliminate approximately 2,000 truck journeys annually and slash related CO₂e emissions by 78%. This acquisition significantly enhances the company’s European rail logistics, reinforcing its commitment to a sustainable and efficient intra-company supply chain.

Main Body:

Novelis, a world leader in aluminum rolling and recycling, has taken a decisive step to own and upgrade its rail transport assets in Europe. The official handover of the first wagons from supplier On Rail GmbH, a German rail vehicle leasing specialist, took place on December 2, 2025, at the DUSS terminal in Göttingen. By December 11, 30 of the 220 wagons were already in operation. This investment replaces the company’s previously leased fleet, marking a strategic shift towards greater control and efficiency in its logistics, which are already 95% rail-based across its 10 European production sites.

The new Shimmns wagons represent a significant technical and operational upgrade. Unlike the previous single-purpose railcars, this new fleet is designed for maximum flexibility, capable of transporting a diverse range of materials including finished aluminum coils, metal scrap for recycling, and aluminum ingots. This versatility allows for more efficient train utilization and optimized material flows. Furthermore, each wagon is equipped with integrated GPS trackers, providing real-time location data for enhanced supply chain visibility. “With this investment, we are laying the foundation for even more efficient and environmentally friendly logistics,” stated Roland Leder, Vice President of Supply Chain at Novelis Europe.

The acquisition directly bolsters a critical logistics artery within Germany’s industrial heartland. The increased transport capacity will primarily serve the route between Novelis’s Nachterstedt facility—Europe’s largest aluminum recycling center—and the Alunorf plant in Neuss, the world’s largest aluminum rolling mill. Previously, insufficient rail capacity forced a portion of these aluminum ingot shipments onto trucks. By shifting this volume entirely to rail, Novelis not only achieves significant cost savings but also advances its corporate sustainability goals under the principle of “rail instead of road.”

Key Takeaways

• Major Modal Shift: The investment enables a full modal shift for key routes, eliminating approximately 2,000 truck trips per year and achieving a 78% reduction in CO₂e emissions for those transports.
• Operational Flexibility: The new multi-purpose Shimmns wagons can handle coils, scrap, and ingots, replacing an inflexible leased fleet and optimizing train capacity.
• Strengthened Supply Chain: The move enhances the critical link between Europe’s largest aluminum recycling facility (Nachterstedt) and the world’s largest rolling mill (Alunorf), improving efficiency and resilience.

Editor’s Analysis

Novelis’s €43 million investment is more than a simple fleet upgrade; it is a clear indicator of a broader trend in industrial manufacturing towards supply chain vertical integration and ESG-driven logistics. By purchasing its own specialized rail assets, Novelis gains greater control over transport costs, scheduling, and, most importantly, its carbon footprint. In an era of volatile fuel prices and mounting regulatory pressure to decarbonize, owning the logistical means of production becomes a competitive advantage. This move serves as a blueprint for other large-scale industrial players on how to leverage private rail investment to build more resilient, cost-effective, and environmentally responsible supply chains in Europe.

Frequently Asked Questions

How much did Novelis invest in the new rail wagons?
Novelis is investing approximately EUR 43 million to acquire the 220 new Shimmns wagons.

What is the main environmental benefit of this investment?
The primary environmental benefit is a 78% reduction in CO₂e emissions by avoiding around 2,000 truck trips annually and shifting that transport volume to rail.

Who is the supplier of the new Shimmns wagons?
The wagons are being supplied by On Rail Gesellschaft für Eisenbahnausrüstung und Zubehör mbH (On Rail GmbH), a German company based in Mettmann that specializes in leasing railway vehicles.