Novelis, a provider of aluminum automotive sheet, will invest $100m to build a new its first automotive sheet manufacturing plant in Changzhou, China.
The new Changzhou plant, which will be built on more than 160 acres, will have a capacity of 120,000 metric tons a year and is expected to start operations in late 2014.
Novelis president and chief executive officer Philip Martens said the latest investment in manufacturing assets further solidifies the company's 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 vehicle emissions," Martens said.
The company expects that the demand for aluminum in the global automotive sector to increase at an annual rate of 25% by 2017 .
Novelis senior vice president and chief strategy and commercial officer Erwin Mayr said 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," Mayr said.
"This site will allow us to address future expansion opportunities in such premium market sectors."
