Novelis breaks ground on automotive aluminum facility in Changzhou, China; $180M investment to double capacity in 2020
Novelis, the global leader in aluminum rolling and recycling, broke ground on the expansion of 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 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 customer’s vehicle-launch plans.
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 distinction of “Excellent Supplier” by FAW-Volkswagen in 2014 and 2015, and was awarded the “Strategy Cooperation” award in 2016 and 2017 by Chery Jaguar Land Rover.
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.
Novelis’ Changzhou plant is the company’s first aluminum automotive sheet manufacturing facility in China. The wholly owned $100-million plant first began commissioning in 2014 with an annual capacity of 100,000 metric tons. Located in the heart of the Changzhou National Hi-Tech District, the plant provides customers in China and abroad with high-quality automotive sheet for use in lightweight vehicle structures and body panels with heat treatment and finishing capabilities.