ATLANTA and SHANGHAI, May 23, 2018 /PRNewswire/
-- Novelis Inc., the world leader in aluminum rolling and
recycling, today announced it will invest approximately
$180 million to double its automotive
aluminum body sheet capacity at its Changzhou facility in China. 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 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. Upon
completion, Novelis expects to create approximately 160 full time
jobs.
Since commissioning its initial automotive finishing line in
Changzhou in 2014, Novelis has
fully contracted its capacity. The timing of this investment is
closely aligned with key customer product launches slated for
2020-2021 from both traditional automakers as well as electric
vehicle startups.
"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."
Worldwide, automotive aluminum demand is projected to nearly
triple over the next eight years with the largest growth potential
to be in China, as both domestic
and global automakers increase aluminum penetration and production
in the market.
"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."
According to IHS Markit, total passenger vehicle demand in
China is expected to reach 34
million units by 2025, with strong market growth coming from
battery electric vehicles.
"Novelis has always had great commitment to the Chinese market
and this investment is key to leading the next-phase of market
development here," said James Liu,
Managing Director of Novelis China, and Vice President, Automotive,
Novelis Asia. "By adding not just manufacturing capacity, but also
design and innovation capabilities, Novelis will be even more
customer-centric and deeply devoted to promoting aluminum
applications in the Chinese market."
Novelis' investment in China is
its second automotive investment this year, having recently
announced a $300 million greenfield
manufacturing facility in Guthrie,
Kentucky, USA.
Forward-Looking Statements
Statements made in this news release which describe Novelis'
intentions, expectations, beliefs or predictions may be
forward-looking statements within the meaning of securities
laws. Forward-looking statements include statements preceded
by, followed by, or including the words "believes," "expects,"
"anticipates," "plans," "estimates," "projects," "forecasts," or
similar expressions. Examples of forward looking statements in
this news release include statements that the company expects to
double its automotive aluminum body sheet capacity with the
Changzhou facility. Novelis
cautions that, by their nature, forward-looking statements involve
risk and uncertainty and Novelis' actual results could differ
materially from those expressed or implied in such
statements. We do not intend, and we disclaim any obligation,
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. Factors that
could cause actual results or outcomes to differ from the results
expressed or implied by forward-looking statements include, among
other things: changes in the prices and availability of aluminum
(or premiums associated with such prices) or other materials and
raw materials we use; relationships with, and financial and
operating conditions of, our customers, suppliers and other
stakeholders; factors affecting our operations, such as litigation,
environmental remediation and clean-up costs, labor relations and
negotiations, breakdown of equipment and other events; economic,
regulatory and political factors within the countries in which we
operate or sell our products, including changes in duties or
tariffs; changes in general economic conditions including
deterioration in the global economy; and changes in government
regulations, particularly those affecting taxes, derivative
instruments, environmental, health or safety compliance. The above
list of factors is not exhaustive. Other important risk
factors included under the caption "Risk Factors" in our Annual
Report on Form 10-K for the fiscal year ended March 31, 2018 are specifically incorporated by
reference into this news release.
About Novelis
Novelis Inc. is the global leader in
aluminum rolled products and the world's largest recycler of
aluminum. The company operates in 10 countries, has approximately
11,000 employees and had $11.5 billion in revenue for its
2018 fiscal year. Novelis supplies premium aluminum sheet and foil
products to transportation, packaging, construction, industrial and
consumer electronics markets throughout North
America, Europe, Asia and South America.
Novelis is a subsidiary of Hindalco Industries Limited, an industry
leader in aluminum and copper, and metals flagship company of the
Aditya Birla Group, a multinational conglomerate based
in Mumbai, India. For more
information, visit novelis.com and follow us on Facebook at
facebook.com/NovelisInc and Twitter at twitter.com/Novelis.
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SOURCE Novelis Inc.