SEATTLE (Scrap Monster): In a bid to keep up with ever-increasing demand from China, the Atlanta-headquartered aluminum rolling and recycling major Novelis, Inc., owned by Hindalco Industries will double the capacity of its plant in Changzhou, Jiangsu province. Also, the company has decided to open a new customer solution center in Shanghai.
The proposed $180 million investment is expected to be completed during H2 2020. Upon completion, the plant’s annual production capacity of heat-treated aluminum sheets is expected to increase by nearly 100,000 metric tons. This will transform Novelis’ Chinese operations into a major production hub, contributing nearly one-fifth of its global automotive sales.
According to Pierre Labat, Vice President-Global Automotive, Novelis, the company focuses on expanding its presence in the Chinese market, which is considered as the highest growth market for aluminum in the world. As per estimates, the Chinese demand for aluminum flat-rolled products is expected to more than double from current level of 10% to 25% of the global automotive aluminum market by 2025, Labat noted.
Novelis plans to establish a new customer solution center in Shanghai, which will work in tandem with the company’s existing centers in the U.S. and Europe. In particular, the Shanghai customer solution center will primarily support customers in the Asian region.
The manufacture of lightweight vehicles using aluminum components has recorded rapid progress in China over the past few years. The sector is expected to achieve more innovation and breakthroughs in future.