Novelis Breaks Ground on Automotive Aluminum Facility in Changzhou, China

Added: 21st January 2019 by Novelis

Novelis, the global leader in aluminum rolling and recycling, expands its automotive aluminum manufacturing facility in Changzhou, China.

The $180 million investment will double the facility's production capacity of heat-treated aluminum sheet by 100,000 metric tons in order to better meet the growing demand for automotive aluminum in Asia. The facility will also be equipped with a high-speed slitter, and a fully automated packaging line. The expansion is expected to create approximately 160 jobs.

This significant expansion provides Novelis with the additional capacity needed to increase its production of innovative aluminum solutions to enable automotive manufacturers to develop the next-generation of safer, stronger and lighter vehicles. The project is scheduled to be complete in 2020 in order to align with key customers' vehicle-launch plans.

The Changzhou facility has a proud history of serving the Asian automotive market and will continue to partner with customers to launch their high performance aluminum intensive vehicles in Asia. Previous partner launches include the Cadillac CT6, CJLR's Jaguar XFL and XEL, and the premium new-energy vehicle (NEV) NIO's ES8 SUV, FAW-Volkswagen Audi A6L and HMC's IONIQ and Kona electric vehicle models, to name a few. In recognition of its quality products and outstanding customer service, Novelis received the honourable distinction of "Excellent Supplier" by FAW-Volkswagen in 2014 and 2015, and was awarded the equally impressive "Strategy Cooperation" award in 2016 and 2017 by Chery Jaguar Land Rover.

"As market demand for lighter, more fuel-efficient vehicles continues to grow, Novelis will play a critical role in supporting the next generation of automotive innovation and design," said Satish Pai, Managing Director of Hindalco Industries, the parent company of Novelis Inc. He added, "This expansion reinforces our steadfast commitment to our customers and communities, and reaffirms our continued confidence in this ever-growing market."

According to Ducker Worldwide, automakers are expected to increase the adoption of high-strength, lightweight aluminum over the next decade, specifically in light trucks, SUVs and electric vehicles, which will grow at a faster rate than the overall sedan markets in North America, Europe and China. In line with the global lightweighting trend, Novelis forecasts the Chinese automotive aluminum market is expected to achieve double-digit growth for the next decade as a result of government policies to lower carbon emissions and increased adoption of electric vehicles.

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