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Novelis investing $205M to expand global automotive aluminum capacity to 900,000 tons annually, up 3x from a year ago

17 December 2013

Aluminum automotive sheet producer Novelis will invest an additional $205 million to further expand its global manufacturing operations serving the rapidly growing automotive market. The company will build new finishing lines at its plants in Oswego, N.Y. and Nachterstedt, Germany, dedicated to the production of aluminum automotive sheet.

Novelis is a leading global provider of aluminum automotive sheet, which auto manufacturers are turning to at an increasing rate for lighter weight structural components and exterior body panels. Novelis aluminum can be found in more than 180 different vehicle models produced by leading automakers around the globe.

The two new lines will each have a capacity of 120,000 metric tons per year. The latest expansions are in response to the escalating global demand from automakers for aluminum sheet, which the company expects to grow by more than 30% per year through the end of the decade. When the new lines are commissioned in late 2015, Novelis’ global automotive sheet capacity will reach approximately 900,000 tons per year, a three-fold increase from just a year ago.

  • Oswego. The company will invest approximately $120 million to install a third aluminum automotive sheet finishing line at its Oswego, N.Y. plant. In addition, the company will expand its recycling operations for automotive scrap, while also making other system and facility upgrades. This new investment will increase the company’s North American automotive sheet capacity to more than 400,000 metric tons in just two years. When complete, the Oswego facility will devote 80% of its total capacity to serving the automotive market.

    In addition to incentives from the State of New York and Empire State Development, the County of Oswego Industrial Development Agency is providing additional support for this investment.

  • Nachterstedt. The company will invest approximately $85 million to install one new aluminum automotive sheet finishing line at its Nachterstedt, Germany facility. This expansion will increase the company’s aluminum automotive sheet capacity in Europe to almost 350,000 metric tons. The expansion will also enhance the developing automotive closed-loop model between the company’s recycling operations in Latchford, UK, and what will be the world's largest aluminum recycling center, a $250-million project at Nachterstedt expected to be commissioned in late 2014.

    The Federal State of Saxony-Anhalt, Germany is providing support for this investment.

With the addition of these two new lines, we have invested nearly $550 million to expand Novelis’ global automotive capacity in the last two years alone.

—Phil Martens, Novelis President and CEO

In addition to the latest two lines, the company recently commissioned two new finishing lines at its Oswego, N.Y. plant. In addition, a new plant is under construction in Changzhou, China, which is expected to commence production in mid-2014. The company also recently certified automotive production at its Göttingen, Germany, plant that complements the company’s existing automotive facilities in Kingston, Ontario, Canada; Sierre, Switzerland and Nachterstedt, Germany.

Both expansions will further the ongoing development of the company’s automotive closed-loop business model. Today, as much as 50% of automotive sheet sold to automakers is left over after a manufacturing plant stamps out automotive parts. The company is working closely with its customers to return this material directly back to Novelis for recycling, streamlining the materials supply chain while reducing the total carbon footprint of the entire automotive production cycle.

Novelis is part of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India.

December 17, 2013 in Brief | Permalink | Comments (3) | TrackBack (0)

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Comments

Does this confirm that aluminum will soon replace many steel parts for the production of future lighter electrified vehicles?

If so, the current aluminum surplus could shrink and current very low aluminum price ($1700/ton or so) could go up above $2000-$2200/ton range?

Alcan and Alcoa would stop talking about closing large plants to get lower energy price?

a: Why only electric cars - all cars can benefit from lightweighting.

b: It sounds like body panels as these are sheet metal plants.

All good stuff, though, lighter cars = less fuel consumption, whatever the power source.

Audi made a few aluminum models, they charge a higher price so could afford it. We will see where all of this goes, I am a fan of aluminum space frames and polymer panels.

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