Aluminum Producer to Double Capacity in China

Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited

A global aluminum producer announced recently that an investment in a continuous annealing solution heat (CASH) treatment line will contribute to doubling its automotive aluminum body sheet capacity at its Changzhou facility in China.

Novelis Inc states that the approximately $180 million investment, which will also include a high-speed slitter as well as a fully automated packaging line, will add approximately 100 kilotonnes (over 220 million pounds) of capacity. This will enhance Novelis’ ability to supply innovative aluminum solutions to its global automotive customer base as well as Chinese domestic producers. Novelis expects to begin expanding its existing facility in 2018 in order to be operational by 2020.

“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,” said Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited. “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.”

Steve Fisher, President and CEO, Novelis Inc

“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,” 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.”

This is Novelis’ second automotive investment this year, having recently announced a $300 million greenfield manufacturing facility in Guthrie, Kentucky, USA.

 

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