May 24: Novelis Inc., a leading aluminium rolling and recycling company and a wholly owned subsidiary of Hindalco Industries Ltd, on Thursday announced that it will invest approximately $180 million to double its automotive aluminium body sheet capacity at its Changzhou facility in China.
According to the company, the investment will be a continuous annealing solution heat (CASH) treatment line that will add approximately 100 kilotonnes of capacity and will include a high-speed slitter as well as a fully automated packaging line.
“These assets along with our proven operational expertise and first-mover advantage in China will enhance Novelis’ ability to supply innovative aluminium 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. Upon completion, Novelis expects to create approximately 160 full time jobs,” the company said in a statement.
Commenting on the development, Kumar Mangalam Birla, Chairman of the board of directors of Novelis Inc. and Chairman of the board of directors of Hindalco Industries Ltd, said, “by adding another strategic asset to expand its operation 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 aluminium.”
Novelis’ investment in China is its second automotive investment this year, having recently announced a $300 million Greenfield manufacturing facility in Guthrie, Kentucky, USA.