Novelis Breaks Ground on Automotive Aluminum Facility in Changzhou, China

Novelis, the global leader in aluminium rolling and recycling broke ground on the expansion of its automotive aluminium manufacturing facility in Changzhou, China. The $180 million plant expansion will double the production capacity of heat-treated aluminium sheet by 100,000 metric tons. The expansion was done to meet the growing demand for automotive aluminium sheet in Asia. The facility will be equipped with a high-speed slitter, and a fully automated packaging line for better operation performance.

The project is scheduled to be complete in 2020 in line with key customer's vehicle-launch plans and is expected to create another 160 jobs.

The expansion will boost Novelis’ innovative aluminium solutions to enable automotive manufacturers to develop the next-generation of safer, stronger and lighter vehicles. The Changzhou facility has been serving the Asian automotive market, partnering with big names and launching high performance vehicles like Cadillac CT6, CJLR's Jaguar XFL and XEL, and the premium new-energy vehicle (NEV) NIO's ES8 SUV, FAW-Volkswagen, Audi A6L etc.

According to Ducker Worldwide, high-strength, lightweight aluminium applications will grow significantly over the next decade, specifically in light trucks, SUVs and electric vehicles. This segment will grow faster than the overall sedan markets in North America, Europe and China. Novelis forecasts the Chinese automotive aluminium market is expected to achieve double-digit growth for the next decade due to government’s newer carbon emission policies and growing adoption of electric vehicles.

"As market demand for lighter, more fuel-efficient vehicles continues to grow, Novelis will play a critical role in supporting the next generation of automotive innovation and design," said Satish Pai, Managing Director of Hindalco Industries, the parent company of Novelis Inc.

"This expansion reinforces our steadfast commitment to our customers and communities, and reaffirms our continued confidence in this ever-growing market," he added.

"This investment in Changzhou will allow us to better serve our automotive customers by providing world-class manufacturing capabilities, products that meet global quality standards, and innovative solutions to make vehicles lighter, safer and stronger," said James Liu, Managing Director of Novelis China and Vice President of Novelis' Automotive Business in Asia.

Novelis' Changzhou plant is its first aluminium automotive sheet manufacturing facility in China commissioned in 2014 with an annual capacity of 100,000 tonnes. the plant provides automotive sheet for use in lightweight vehicle structures and body panels to Chinese and international customers.