Novelis to Build First Manufacturing Plant in China
Newest Automotive Expansion Provides Unmatched Global Footprint
SHANGHAI, April 10, 2012
SHANGHAI, April 10, 2012 /PRNewswire/ --Novelis Inc., the world's leading
producer of premium aluminum rolled products, today signed an agreement with
the Changzhou National Hi-Tech District to build the company's first
automotive sheet manufacturing facility in China. The agreement, which
includes land use rights to more than 160 acres, was signed today at a formal
ceremony in Changzhou City in the Jiangsu Province of China.
Novelis is the world's leading producer of rolled aluminum for the global
automotive market and the leading provider of aluminum sheet to the rapidly
expanding Chinese automobile industry. The wholly owned, $100-million plant
will have a capacity of 120,000 metric tons per year and is expected to be
commissioned for operation in late 2014.
"The agreement we signed today marks another important milestone in the
execution of Novelis' global strategy," said Philip Martens, President and
Chief Executive Officer of Novelis. "This latest investment in world-class
manufacturing assets 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. Aluminum is a sustainable choice for automotive
customers with its infinite recyclability and low weight that helps reduce
Novelis expects demand for aluminum in the global automotive sector to grow at
a compound annual rate of 25 percent 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 aluminum sheet supplier
capable of serving automotive customers in all major markets of the world.
Novelis is the leader in automotive sheet supply in Europe where light-weight
aluminum has become a popular alternative to steel for vehicle makers. And,
as previously announced, to meet growing demand in North America the company
is expanding its footprint there with a $200-million project to increase
automotive sheet capacity by 200,000 tons per year.
Located in the heart of the Changzhou National Hi-Tech District, the new site
is close to vital rail lines, the Changzhou deep water port on the Yangtze
River and other world-class business and commercial infrastructure. The
company plans to ship rolled aluminum coils manufactured at its South Korean
operations to the new facility in Changzhou for heat treatment and finishing
before delivery to automotive customers within China as well as to export
markets. Current Novelis auto sheet customers include Audi, BMW, Chrysler,
Ferrari, Ford, GM, Hyundai, Jaguar, Land Rover, Mercedes-Benz, Porsche, and
Volvo, among others.
"Our intention is to grow our leadership position in the Chinese marketplace,"
said Erwin Mayr, Senior Vice President and Chief Strategy and Commercial
Officer for Novelis. "Within Asia, China will have the highest demand growth
for flat-rolled aluminum products. In addition to automotive, we expect Asian
demand for aluminum used in beverage cans and consumer electronics to more
than double by 2020. This site will allow us to address future expansion
opportunities in such premium market sectors."
Novelis Inc. is the global leader in aluminum rolled products and aluminum can
recycling. The company operates in 11 countries, has nearly 11,000 employees
and reported revenue of $10.6 billion in fiscal year 2011. Novelis supplies
premium aluminum sheet and foil products to automotive, transportation,
packaging, construction, industrial, electronics and printing markets
throughout North America, Europe, Asia and South America. Novelis is a
subsidiary of Hindalco Industries Limited (BSE: HINDALCO), one of Asia's
largest integrated producers of aluminum and a leading copper producer.
Hindalco is a flagship company of the Aditya Birla Group, a multinational
conglomerate based in Mumbai, India. For more information, visit
www.novelis.com and follow us on Twitter at twitter.com/Novelis.
Statements made in this news release which describe Novelis' intentions,
expectations or predictions may be forward-looking statements within the
meaning of securities laws. Examples of forward-looking statements in this
news release include anticipated plant capacity and expected aluminum demand
growth in Asia. Novelis cautions that, by their nature, forward-looking
statements involve risk and uncertainty. We do not intend, and we disclaim any
obligation, to update any forward-looking statements, whether as a result of
new information, future events or otherwise. Important risk factors which
could impact outcomes are included under the caption "Risk Factors" in our
Annual Report on Form 10-K for the year ended March 31, 2011.
SOURCE Novelis Inc.
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