Oct. 11, 2017
Novelis, Kobe Create JV in South Korea
Novelis has entered a joint venture with Japan’s Kobe Steel to operate the Ulsan Aluminum facility in South Korea. Novelis had been operating the facility alone in Ulsan but sold interest to Kobe for $315 million. Under the terms of the venture, the two producers will jointly own Ulsan Aluminum, with each company responsible for its own metal supply and commercial relationships.
The Ulsan Aluminum plant is strategically located in the industrial hub of South Korea to support the increasing demand for high-strength and lightweight aluminum for automotive and specialty products including electronics and building materials in Asia, the company claims. The plant recently completed a major expansion, adding a new three-stand hot finishing mill, as well as a pusher furnace and annealing furnaces.
“This strategic partnership further supports Novelis’ continued commitment to growth in the Asian automotive industry and creates new capabilities to meet the increasing demand for aluminum sheet,” says Sachin Satpute, President of Novelis Asia. “Through an increase in operational efficiencies and process enhancements, this partnership will provide our global customers greater access to the numerous benefits of aluminum.”