Business Standard
Novelis to build $100 mn plant in China
Edited by : AL CIRCLE
2 min read
Aluminium-rolled products maker Novelis today said it will invest $100 million to set up a manufacturing plant at Changzhou in China with a capacity of 1.2 lakh tonne a year to cater to the auto sector.
The company, a subsidiary of Aditya Birla Group flagship Hindalco Industries, signed a pact with the Changzhou National Hi-Tech district to build its first automotive sheet making facility in China, it said in a statement.
"The agreement including the land use rights to more than 160 acres was signed today at a formal ceremony in Changzhou City in Jiangsu Province of China. The wholly-owned, $100 million plant will have a capacity of 120,000 tonnes a year," it said.
The plant would be commissioned in late 2014, it added.
Novelis is a leading producer of rolled aluminium for the global automotive market, including China. It operates in 11 countries, has nearly 11,000 employees, and reported $10.6 billion revenue in FY11.
It would bring rolled aluminium coils manufactured at its South Korean operations to the new Changzhou facility for heat treatment and finishing before delivering to customers within and outside China.
"This investment further solidifies Novelis' position as the partner-of-choice for global automotive manufacturers seeking to drive fuel efficiency, high performance and innovative design in current and next-generation vehicles," company's President and CEO Philip Martens said.
The company expects demand for aluminium in the global automotive sector to grow at a compound annual rate of 25% over the next five years as auto manufacturers look for ways to make their vehicles more fuel efficient.
"The move into China will position Novelis as the only aluminium sheet supplier capable of serving automotive customers in all major markets of the world," it said.
It said the new site is close to vital rail lines, a deep water port and other world-class business and commercial infrastructure.
Novelis supplies rolled coils to Audi, BMW, Chrysler, Ferrari, Ford, GM, Hyundai, Jaguar, Land Rover, Mercedes-Benz, Porsche, and Volvo among others.
The company, a subsidiary of Aditya Birla Group flagship Hindalco Industries, signed a pact with the Changzhou National Hi-Tech district to build its first automotive sheet making facility in China, it said in a statement.
"The agreement including the land use rights to more than 160 acres was signed today at a formal ceremony in Changzhou City in Jiangsu Province of China. The wholly-owned, $100 million plant will have a capacity of 120,000 tonnes a year," it said.
The plant would be commissioned in late 2014, it added.
Novelis is a leading producer of rolled aluminium for the global automotive market, including China. It operates in 11 countries, has nearly 11,000 employees, and reported $10.6 billion revenue in FY11.
It would bring rolled aluminium coils manufactured at its South Korean operations to the new Changzhou facility for heat treatment and finishing before delivering to customers within and outside China.
"This investment further solidifies Novelis' position as the partner-of-choice for global automotive manufacturers seeking to drive fuel efficiency, high performance and innovative design in current and next-generation vehicles," company's President and CEO Philip Martens said.
The company expects demand for aluminium in the global automotive sector to grow at a compound annual rate of 25% over the next five years as auto manufacturers look for ways to make their vehicles more fuel efficient.
"The move into China will position Novelis as the only aluminium sheet supplier capable of serving automotive customers in all major markets of the world," it said.
It said the new site is close to vital rail lines, a deep water port and other world-class business and commercial infrastructure.
Novelis supplies rolled coils to Audi, BMW, Chrysler, Ferrari, Ford, GM, Hyundai, Jaguar, Land Rover, Mercedes-Benz, Porsche, and Volvo among others.
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