Novelis proposes to spend 200 million U.S. dollars in the United States and Germany to expand production of automotive aluminum

Novelis has announced that in order to meet the rapid increase in demand for aluminum materials in the automotive market, the company plans to invest US$205 million in the expansion of its two plants in the United States and Germany.

Novelis Expands Production of Automotive Aluminum Sheets in the United States and Germany

Novelis will invest 120 million U.S. dollars in its plant in Oswego, NY, to install a third automotive aluminum sheet finishing line. At the same time, it will also expand the automotive aluminum scrap recycling business at the plant and other System and facilities are upgraded. The investment project will create 90 new jobs and will increase the automotive aluminum sheet production capacity in North America to 400,000 tons per year. By that time, 80% of the plant's production capacity will be used to supply the automotive market.

In addition, Novelis will invest US$85 million in its factory in Natcherstedt, Germany, to install a new automotive aluminum finishing line. The expansion project will create 120 new jobs and will increase the automotive aluminum sheet production capacity of Novelis Europe to 350,000 tons/year. In addition, Novelis will also increase its recycling business at its Latchford plant in the UK.

Novelis predicts that by 2020, the demand for aluminum sheet in the global auto industry will climb by more than 30% every year. The investment projects for the two factories in the United States and Germany are to cope with this trend. The expansion is expected to be completed by the end of 2015. By then, the global automotive aluminum sheet production capacity will reach 900,000 tons/year, which will triple compared to the level of a year ago.

According to Novelis President and CEO OphHilMartens, including the above two new production lines, the company has spent a total of US$550 million over the past two years to expand its aluminum sheet production capacity. Currently, the new plant of Novelis in Changzhou is under construction and is expected to be put into operation in mid-2014.

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