Novelis Opens China’s First Heat-Treated Aluminum Automotive Sheet Plant

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Novelis recently opened China’s first plant dedicated to the production of heat-treated aluminum automotive sheet. The opening makes Novelis the only company to produce automotive aluminum sheet in all 3 of the world’s major automobile producing regions – Asia, Europe and North America.

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The wholly-owned facility, located in the Changzhou National Hi-Tech District, represents a $100 million investment by Novelis to expand its global footprint to serve the rapidly growing Chinese market for automotive aluminum. With an annual capacity of 120,000 metric tons, the new facility will assist China in meeting its environmental goals and provide customers in Asia and abroad with high-quality automotive sheet for use in lightweight vehicle structures and body panels such as hoods, doors, fenders and lift gates.

“The opening of our Changzhou plant further solidifies Novelis’ position as the aluminum partner-of-choice for automakers around the world,” said Phil Martens, President and CEO of Novelis in a statement. “Global automakers seeking to drive fuel efficiency, higher performance and innovative design can now source locally-produced Novelis aluminum automotive sheet in every major region where they make vehicles.”

Since 2011, Novelis has invested more than $550 million globally to triple its automotive sheet capacity to 900,000 metric tons by 2015. Each 10% weight reduction can result in a 5 to 7%t fuel savings.

With a 1.3% increase over the past day, the cash price of primary aluminum was the biggest mover on the LME, closing at $1,954 per metric ton on Tuesday, October 21. On the LME, the 3-month price of aluminum inched up 1.2% to $1,968 per metric ton. The cash price of primary Indian aluminum increased 0.4% to INR 121.95 ($1.99) per kilogram.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap remained essentially flat at CNY 12,250 ($1,995) per metric ton. The price of Chinese aluminum billet continues hovering around CNY 13,590 ($2,213) per metric ton for the fifth day in a row. For the fifth consecutive day, the price of Chinese aluminum bar held flat at CNY 14,200 ($2,312) per metric ton. For the fifth day in a row, the Chinese aluminum cash price remained essentially flat at CNY 13,960 ($2,273) per metric ton.

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