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Moving its global headquarters from its longtime Buckhead base to a new 13-story tower nearby demonstrates Atlanta-based Novelis Inc.’s optimism about long-term global growth trends in the aluminum sector.
Novelis is the naming partner and initial tenant for One Phipps Plaza, a new office building developers say is the culmination of plans to “reimagine” the luxury shopping mall into a broader live-work-play “ecosystem” complete with upscale offices, hotels and a variety of food options.
Developers held a “topping out” Wednesday, an event marking the placement of the last structural elements on a building still under construction. In attendance were executives from both Novelis and Simon Properties, which owns Phipps Plaza and nearby Lenox Square Mall.
Novelis has committed to taking 90,000 square feet on three floors that overlooking the complex’s other additions: the upscale Nobu Hotel and the Life Time Athletic Resort and co-working space, both of which boast rooftop pools visible from Novelis’s perch above the city’s forest canopy. A courtyard between the three buildings will include green space and the Citizens Culinary Market, an upscale food hall covering 24,000 square feet.
Set for later this year, Novelis’s move will happen after aluminum has seen a reprieve from frequent use as a trade cudgel in recent years. . It also comes as prices hit historic highs, and as the company’s 500 Atlanta employees come to terms with new modes of working upon emerging from the throes of the COVID-19 pandemic.
Aluminum has become a darling of the sustainability sector. While its mining and production is very carbon intensive, once made, the material is “infinitely” recyclable — meaning it doesn’t degrade during the recycling process like paper and plastic.
“We’re seeing unbelievable demand in our end markets, across all end markets, and it’s driven by sustainability,” Novelis CEO Steve Fisher told Global Atlanta, citing a “resurgence in beverage cans right now, because it is the most sustainable packing you can get versus PET, versus glass.”
He pointed to aluminum’s relatively light weight as an advantage in sectors like building materials and cars, especially electric vehicles, as manufacturers look to replace heavier metals in order to cut emissions and introduce more recycled materials into their processes.
Novelis’s global presence and ongoing investments in both rolled aluminum and recycling plants give the company, owned by India-based conglomerate Aditya Birla Group, a solid footing even as many other companies face uncertainty amid supply chain challenges. With aluminum prices elevated, Novelis posted a 33 percent increase to $4.3 billion in the third quarter of its 2022 fiscal year, which ended in December. Operating profits were up 33 percent as higher aluminum helped offset rising input costs.
The process of designing a new office, which renderings showed as having light wood accents, an open lobby and ample space for collaboration — both indoors and outside in One Phipps Plaza’s public spaces — was informed by employee surveys, observations and other data points as traditional work habits were upended during COVID-19.
Tom Boney, senior vice president and president of Novelis North America, told Global Atlanta that the learning experience is ongoing.
“I wouldn’t put it in the past tense,” Mr. Boney said. “We’re still learning. We went right into a pandemic, and immediately everyone reacted and responded. We gradually morphed into new ways of working, and what we realized is that digital connection can work, but we do miss collaboration face-to-face. What that collaboration look like and what the balance of digital work looks like is still yet to be determined.”
Being in a place like One Phipps Plaza with considerable amenities, MARTA accessibility and ample parking, gives the company flexibility to navigate the coming changes, he said.
Mr. Fisher, the CEO, stressed the need for collaboration, creativity and connection as driving the relocation to a flexible space. He also noted that Buckhead has always been a great place for recruiting global talent and hosting visitors from abroad — an important factor in selecting Phipps, just across Lenox Road from Novelis’s current offices at Two Alliance Center.
“When we have visitors come in — and we have visitors from all over the world — the ability to stay at the Nobu or the AC Hotel, to have the amenities right on the property and our office right here — that just makes for convenience after long flights coming in from different places around the world,” Mr. Fisher said.
Patrick Peterman, senior vice president of development and asset intensification for Simon Properties, said international visitors have always been part of the Phipps fabric.
“Phipps Plaza is a world-recognized shopping center. A lot of people come into Atlanta, given the airport and the hub. They connect here and they stop here,” he said, adding that the trend will only grow as the city becomes even more hospitable to global companies like Novelis.
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