Novelis to Invest US$180 MM in Automotive Aluminium Plant in Eastern China

In a bid to capitalize on the ever-expanding market for automotive aluminium, Atlanta’s rolled and recycled aluminium firm Novelis Inc. announced on Wednesday that it will invest US$180 million in Jiangsu, China.

Per the firm, the investment at its facility in Changzhou will involve the addition of a continuous annealing solution heat (CASH) treatment line, adding around 100 thousand metric tons of new capacity. The capacity will include a high-speed slitter and a fully automated packaging line, and it is expected to add another 180 workers to the plant.

Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited noted that the move is being done in advance of demand for aluminium by its customers.

“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 aluminum 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 aluminum.”

Novelis says the improvements at the plant are slated to begin later this year, with the expectation that the new equipment will come online in 2020.

Steve Fisher, President and CEO, Novelis Inc., says that the new equipment will place the company in a commanding position for meeting the growing demand for automotive aluminium in China.

“As our customers continue to see aluminum 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. 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.”

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.



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