Loading prices...

Register/Sign in
ScrapMonster
Sell Your Junk CarGet an instant quote for your car on ScrapMonster.com
Aluminum May 24, 2018 01:30:42 PM

Novelis Invests $180M to Double Automotive Aluminum Sheet Capacity

Paul Ploumis
ScrapMonster Author
The strategic decision to invest in expansion of Chinese operations comes in the midst of recent projections that global automotive aluminum demand is likely to triple over the next eight years.

Novelis Invests $180M to Double Automotive Aluminum Sheet Capacity

SEATTLE (Scrap Monster): Novelis, Inc.-the Atlanta, Georgia-headquartered global leader in rolled aluminum products and recycling has announced major investment to boost its production capacity in its Chinese facility. The press release issued by the company states that it will invest approximately $180 million at its Changzhou facility, which will double its capacity. Incidentally, the facility produces automotive aluminum body sheets. The investment will help Novelis to serve domestic as well as global automotive customers with innovative aluminum solutions. Novelis had recently announced groundbreaking of new Kentucky Aluminum Sheet Facility.

The investment involves installation of a continuous annealing solution heat (CASH) treatment line which includes a high-speed slitter and a fully-automated packaging line. The new line is expected to add approximately 100 kilotonnes of additional capacity. The works are expected to commence this year and are expected to be completed by 2020. Upon completion of the expansion works, Novelis expects to generate nearly 160 well-paid full-time jobs in the region, said the press release.

ALSO READ: Novelis' Net Sales Surged 20% in Fiscal 2018

The strategic decision to invest in expansion of Chinese operations comes in the midst of recent projections that global automotive aluminum demand is likely to triple over the next eight years, with largest growth potential predicted in China. As per estimates, passenger vehicle demand in China is expected to exceed 34 million units by 2025. Of late, aluminum has emerged as the preferred material of choice by automakers, in order to meet the lightweighting and performance goals. The stricter emission rules and drive to increase fuel efficiency are likely to result in increased use of aluminum in making automotive body parts.

James Liu, Managing Director of Novelis China noted that investment testifies Novelis’ ongoing commitment to growing Chinese market and will lead the next phase of market development.

×

Quick Search

Advanced Search