Novelis acknowledges support of local Chinese government in Changzhou Plant Construction

Novelis Inc., the world leader in aluminum rolling and recycling, today recognized the Chinese government for its support in the construction of the company’s first manufacturing plant in China. Phil Martens, President and Chief Executive Officer of Novelis, visited the city of Changzhou and conveyed appreciation to Mayor Fei Gaoyun for the high degree of mutual cooperation between Novelis and the local government.

On April 11, 2012, Novelis signed an agreement with the Changzhou National Hi-Tech District to build China's first aluminum automotive sheet manufacturing facility with an annual capacity of 120,000 metric tons. Since 2012, the company has invested more than 100 million USD in construction of the plant, which is wholly owned by Novelis, to meet the rapidly growing demand for flat-rolled aluminum used in lighter, more fuel-efficient vehicles.

As auto manufacturers strive for improved fuel efficiency and reduced emissions by introducing lightweight vehicles, the demand for automotive aluminum sheet is expected to grow by approximately 30 percent per year across the globe through the end of the decade.

“Sustainable growth is one of the top national agendas of the Chinese government,” said Mayor Gaoyun. “We expect a more sustainable future for the Chinese automotive industry by supporting the manufacture of aluminum cars in China through this strong partnership with Novelis.”

“We’re very grateful for the active and professional support of the city of Changzhou,” said Martens. “I am impressed with the rapid growth of the Changzhou National High-tech District. It has become the center of China’s high-tech industrial development, located in the Yangtze River delta which generates more than 20 percent of China's total GDP. I expect our mutual cooperation will contribute further to future growth in this area.”

The company’s Changzhou plant is expected to start production in mid-2014. The plant has been built according to rigorous environmental design, construction and operational standards including world-class energy managements system, solar water heating, CO2 emission controls and best-in-class water efficiency. From the beginning, creating a green and sustainable manufacturing system has been a core focus for Novelis' entrance into China.

When the Changzhou plant goes live this year, Novelis will become the only aluminum manufacturer with automotive sheet capability in all three of the major auto-producing regions – Asia, Europe and North America.

Novelis has invested 550 million USD over the past two years across the globe to respond to the escalating global demand from automakers for aluminum sheet. In 2015, Novelis' global automotive sheet production capacity will reach approximately 900,000 tons per year, a three-fold increase from just a year ago.