Novelis to build 624 million yuan aluminum sheet plant in China
Novelis Inc., the auto industry's largest producer of flat-rolled aluminum, says it has launched construction of its first aluminum plant in China.
The plant will cost $100 million (624 million yuan), and will be located in Changzhou, in eastern China's Jiangsu province.
Novellis' wholly owned facility will open late in 2014 and will produce up to 120,000 metric tons annually. The company will ship aluminum coils from its operations in South Korea to the new facility, which will provide heat treatment and finishing before final delivery to customers.
"The market is very large potentially," Novelis Asia President Sashi Maudgal told Bloomberg News in a phone interview. "We believe that will grow rapidly, exceeding the 25 percent compound average growth rate over the next several years."
Automakers will use the sheet aluminum for body panels and structural components. According to Bloomberg News, customers will include Mercedes-Benz and Audi AG.
Lightweight aluminum will help automakers to meet China's new fuel efficiency targets, which were announced in July.
By 2015, passenger cars must have fuel efficiency of 5.9 liters of gasoline per 100 kilometers, and 5 liters per 100 kilometers by 2020.
Novellis' wholly owned facility will open late in 2014 and will produce up to 120,000 metric tons annually. The company will ship aluminum coils from its operations in South Korea to the new facility, which will provide heat treatment and finishing before final delivery to customers.
"The market is very large potentially," Novelis Asia President Sashi Maudgal told Bloomberg News in a phone interview. "We believe that will grow rapidly, exceeding the 25 percent compound average growth rate over the next several years."
Automakers will use the sheet aluminum for body panels and structural components. According to Bloomberg News, customers will include Mercedes-Benz and Audi AG.
Lightweight aluminum will help automakers to meet China's new fuel efficiency targets, which were announced in July.
By 2015, passenger cars must have fuel efficiency of 5.9 liters of gasoline per 100 kilometers, and 5 liters per 100 kilometers by 2020.
