One of the major producers of high-quality aluminum rolled products, Novelis, has entered into a contract with the Changzhou National Hi-Tech District to establish the first $100-million worth automotive sheet production plant in China.
The contract has been signed for the rights to use over 160 ac of land in the district. The new facility will have a production capacity of 120,000 mt of aluminum sheet per year.
Novelis has planned to deliver rolled aluminum coils that are produced at its operations in South Korea to the Changzhou-based facility for heat treatment and product finishing. The finished products will be supplied to automotive clients in China and to export markets. The facility is anticipated to start operations in late 2014.
Aluminum is mostly preferred by automotive manufacturers, as it has a low weight and infinite recyclability that helps to minimize vehicle emissions. As auto makers seek ways to create their vehicles highly fuel efficient, the company anticipates that the demand for aluminum in the worldwide automotive industry will grow at CAGR of 25% in the next five years.
Philip Martens, President and CEO of Novelis, remarked that the contract is another major milestone in the company’s global strategy. The investment in this world-class manufacturing facility further strengthens the company’s position as the ideal partner for worldwide automotive manufacturers, who look for innovative design, high performance and fuel efficiency in existing and new vehicles. Novelis is extending its footprint in North America to meet the increasing demand in the region through a $200-million project and the expansion helps to boost the automotive sheet production capacity by 200,000 t annually. Volvo, Porsche, Land Rover, Hyundai, Ford, GM, Ferrari, Chrysler and Audi are some of the company’s current automotive aluminum sheet customers.
Source: http://www.novelis.com/