The Wall Street Journal
Novelis CEO foresees aluminum use in vehicle industry to double in a decade
Edited by : AL CIRCLE
1 min read
Intensive use of aluminum in vehicles is growing more than 25% a year, signalling "a gigantic and permanent change" in the automotive industry, spurred on by new regulations on fuel economy and carbon emissions, the chief executive officer of a major aluminum sheet producer said.
While aluminum today accounts for a small percentage of vehicles' body structure, at 1%, this could more than double to 2.5% by the end of the decade, in addition to the already extensive use of aluminum castings in vehicle engines, Mr. Martens said.
"Total tonnage of sheet aluminum today used in the automotive sector is 450,000 tons a year," Mr. Martens said. "This will probably grow three-fold by the end of the decade."
In response to accelerating demand, Novelis is currently investing more than $400 million in expanding its sheet aluminium metal production facilities. This is part of an investment of up to $3 billion in the 2011-2014 period, which will raise the company's aluminum product production capacity by 25% to 3.6 million tons a year and will also boost its aluminum recycling business.
While aluminum today accounts for a small percentage of vehicles' body structure, at 1%, this could more than double to 2.5% by the end of the decade, in addition to the already extensive use of aluminum castings in vehicle engines, Mr. Martens said.
"Total tonnage of sheet aluminum today used in the automotive sector is 450,000 tons a year," Mr. Martens said. "This will probably grow three-fold by the end of the decade."
In response to accelerating demand, Novelis is currently investing more than $400 million in expanding its sheet aluminium metal production facilities. This is part of an investment of up to $3 billion in the 2011-2014 period, which will raise the company's aluminum product production capacity by 25% to 3.6 million tons a year and will also boost its aluminum recycling business.
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