Dec. 18, 2013
Novelis Investing Extra $205 Million in Auto Facilities
Atlanta-based aluminum producer Novelis will invest an additional $205 million to further expand its manufacturing operations to serve the automotive market. The company will build new finishing lines at its plants in Oswego, N.Y., and Nachterstedt, Germany, dedicated to the production of aluminum automotive sheet.
The two new lines will each have a capacity of 120,000 metric tons per year. The latest expansions are in response to the escalating global demand from automakers for aluminum sheet, which the company expects to grow by more than 30 percent per year through the end of the decade. When the new lines are commissioned in late 2015, Novelis' global automotive sheet capacity will reach approximately 900,000 tons per year, a three-fold increase from just a year ago.
In Oswego, the company will invest approximately $120 million to install a third aluminum automotive sheet finishing line. In addition, the company will expand its recycling operations for automotive scrap, while also making other system and facility upgrades. This new investment will increase the company's North American automotive sheet capacity to more than 400,000 metric tons in just two years. When complete, the Oswego facility will devote 80 percent of its total capacity to serving the automotive market.
"With the addition of these two new lines, we have invested nearly $550 million to expand Novelis' global automotive capacity in the last two years alone," says Phil Martens, president and CEO. “This commitment—backed by our history of automotive technology innovation, volume production experience and unmatched global footprint—strengthens our recognized leadership position as the partner of choice for world-class automotive manufacturers."
Both expansions will further the ongoing development of the company's automotive closed-loop business model. Currently, as much as 50 percent of automotive sheet sold to automakers is left over after a manufacturing plant stamps out automotive parts. The company is working with its customers to return this material directly back to Novelis for recycling, streamlining the materials supply chain while reducing the total carbon footprint of the entire automotive production cycle, the company claims.