Novelis Inc. will invest approximately $180 million to double its production capacity at its Changzhou facility in China. The aluminium rolling and recycling manufacturer will begin expanding its automotive aluminium body sheet plant in 2018 in order to be operational by 2020.
"Novelis has always had great commitment to the Chinese market and this investment is key to leading the next-phase of market development here," said James Liu, Managing Director of Novelis China, and Vice President, Automotive, Novelis Asia. "By adding not just manufacturing capacity, but also design and innovation capabilities, Novelis will be even more customer-centric and deeply devoted to promoting aluminium applications in the Chinese market."
The company said the investment will be a continuous annealing solution heat (CASH) treatment line that will add approximately 100 kilotonnes of capacity and will include a high-speed slitter as well as a fully automated packaging line.
"As our customers continue to see aluminium as the material of choice to meet their lightweighting and performance goals, Novelis is strengthening its leadership position in the world's largest automotive market place," said Steve Fisher, President and CEO, Novelis Inc. "We believe China's commitment to fuel efficiency and reducing emissions represent a large and favorable opportunity that will require greater adoption of aluminium, particularly in the rapidly growing electric vehicle market."
The global automotive aluminium demand is projected to nearly triple over the next eight years with the largest growth potential to be in China. According to IHS Markit, total passenger vehicle demand in China is expected to reach 34 million units by 2025, with strong market growth coming from battery electric vehicles.
Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited said: "By adding another strategic asset to expand its operations in China, Novelis continues to leverage the strength of the Aditya Birla Group as the global leader in aluminium rolling. Investing ahead of projected customer demand enables Novelis to offer premium products and a reliable supply chain to automakers as they continue to adopt more automotive aluminium."
Responses
