On Friday, January 14, Aluminum Association CEO Charles Johnson pointed out that investment in the US aluminum industry has started rising backed on the improvement in the economy in 2021. He added domestic producers announced investment of $800 million or more in Greenfield and expansion projects in just the last six months.
“The US aluminum industry continues to place big bets on the future of aluminum production, fabrication and recycling in the US,” Johnson said in a newsletter. He added investments have picked up since “a relatively dormant period during the peak of the COVID-19 crisis in 2020.”
As examples, Johnson mentioned about the projects announced by Novelis, Commonwealth Rolled products, and Norsk Hydro. According to him, these represent the new downstream aluminum capacity to come online in the US in the next few years to meet demand in key sectors.
“Aluminum is the fastest growing material used by automakers and is expected to grow to 514 lb per vehicle by 2026, up more than 25% in just 10 years,” Johnson said. “Aluminum demand is also increasing in the packaging and building markets. Robust trade enforcement efforts by the government and industry have also driven investment in recent years.”
On January 11, 2022, Novelis revealed its plan to construct a $365 million aluminum recycling plant in Kentucky, scheduled to commission in 2024. The plant will produce 240,000 tonnes per year aluminum sheet ingot for North American automotive industry costumers.
Prior to that, in 2021, Novelis also outlined a $7 million investment in its Terre Haute, Indiana, plant to expand aluminum foil production for household applications. Another investment plan announced by Novelis was of $130 million to enhance operations at its Oswego, New York, facility.
Hydro said in November 2021 it would spend $140 million to build an aluminum recycling plant in Cassopolis, Michigan. Commonwealth said in December that it would invest $167 million to expand and improve its rolling mill in Lewisport, Kentucky.
Johnson said the flurry of capital expenditures follow a larger trend of growth in the US aluminum industry over the last 10 years, with “more than $4 billion in US manufacturing to support growing demand for the metal.”
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