American rolled and recycled aluminium firm Novelis Inc. unveiled plans yesterday to construct and operate a 200-thousand-metric-tons-per-annum automotive aluminium sheet manufacturing facility in Guthrie, Kentucky.
Per the firm’s press release, the US$300 million greenfield facility will feature heat treatment and pre-treatment lines for use in producing aluminium sheet for subsequent molding into such automotive parts as body-in-white, hoods, doors, lift gates, and fenders.
Kumar Mangalam Birla, chairman of the board of directors of both Novelis Inc. and Hindalco Industries Limited, lauded the development as a step in maintaining its position at the head of the pack in the automotive aluminium sector.
“Today’s announcement by Novelis to expand its capabilities in North America is a strategic decision fully supported by the Aditya Birla Group to maintain the group’s leadership position in the global metals sector and its ongoing commitment to serve both upstream and downstream customers. We are immensely proud of this latest investment and look forward to seeing it flourish.”
Anticipating a significant jump in demand for aluminium by automakers around the world, Novelis expects to begin construction in a few months, with a target date for completion of 2020. Once opened, the facility will employ approximately 125 workers.
Satish Pai, Managing Director, Hindalco Industries Limited and a member of the board of directors of Novelis, Inc., sees the opening of this plant as a strategic move for the firm that will widen its already significant reach in the automotive aluminium field.
“As the global leader in automotive aluminum sheet production, Novelis is leveraging its strong balance sheet, technical expertise and proven product excellence to make this strategic investment that will ultimately add to its unmatched manufacturing footprint and deliver innovative solutions to the marketplace.”
As over 200 different automobile models now include aluminium produced by his firm, Steve Fisher, President and CEO of Novelis, Inc., notes the rise in the lighter, safer materials use in the coming years as well.
“Aluminum is a growing material of choice for the automotive industry worldwide as auto manufacturers continue to demand more and more aluminum to produce lighter, safer and stronger cars, trucks and SUVs. Novelis will continue to innovate alongside our automotive customers to lightweight the vehicles of today while looking ahead to meet the mobility needs of the fleet-based economies of tomorrow.”
Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$10 billion in revenue for the most recent fiscal year.