Novelis Breaks Ground for New Facility in China

Novelis recently broke ground for a new factory in China that would specialize in the manufacture of premium automobile aluminum sheets. Located in Changzhou National Hi-Tech District in China, Novelis has set aside USD 72 million as the registered capital and plans to make a further investment of USD 218 million in the facility. It is expected that the new factory will help Novelis to ramp up its production capacity in Changzhou by 100,000 tons. Once the factory becomes operational, the total amount that Novelis has invested in the Changzhou National Hi-Tech District is expected to exceed USD 400 million.

The company’s parent company, Hindalco had set up Novelis (China) in Changzhou National Hi-Tech District in June 2012 and this is Hindalco’s first automotive aluminum sheet manufacturing facility in China. It is also the first such factory for premium automobile aluminum sheets in China.

Novelis (China) makes sheets that are used primarily in components like rear baffles, vehicle engine hoods, doors, fenders, chassis, roofs and structural parts. Current, the company has many international brands as its customers including, BMW, Ford, Audi, GM, Hyundai, Jaguar, Mercedes-Benz and Peugeot Citroen. Chinese brands like BAIC, BYD, Great Wall and SAIC also are part of the company’s growing customer base. Novelis made almost USD 184 million worth of products at Changzhou facility during 2017.

The factory has experienced a surge in orders owing to the increase in demand for electric vehicles from NIO, Audi, Cadillac and Jaguar, and it is expected that the Novelis Changzhou facility will achieve full production by the end of the year. This is why the company plans to build a new rolled aluminum production line and equip it with first-class equipment, in order to double the annual output of aluminum sheets. On May 31, 2018, Novelis (China) signed a new project investment agreement with Changzhou National Hi-Tech District, and added $72 million to its registered capital.

The Changzhou National Hi-tech District is located in the heart of the Yangtze River Delta and serves as home to over 1,600 foreign-invested companies.