Novelis Builds First Aluminum Auto Sheet Plant in China

SHANGHAI, Nov. 16 (SMM) – Novelis, the global leader in aluminum rolling and recycling, began to build its first China-based aluminum sheet factory in Changzhou on November 15.

The project, with annual capacity of 120,000 mt, represents USD 100 million in investment and is scheduled to come online by the end of 2014. Novelis plans to ship rolled aluminum coils produced in South Korea to the new facility in Changzhou for heat treatment and precision processing before finally supplying automakers in China as well as export markets. Global demand for automobile aluminum sheet will grow at a compound annual growth rate of over 25% over the next five years since automakers are trying to improve fuel efficiency and reduce emission, said Liu Qing, managing director of Novelis (China).

According to SMM data, global demand for aluminum alloy auto body panels was roughly 250,000 mt in 2011. Only producers in the US, Germany, Japan and France are capable of producing such aluminum alloy auto body panel, with Novelis being the leader. Related components in domestic markets are all imported from other countries.

Southwest Aluminum said in mid 2012 that it has built China’s first auto aluminum sheet production line. The production line is now able to produce samples of aluminum alloy auto sheet and will enter production within two years at its earliest. Novelis’ decision to build first aluminum sheet plant in China due to optimistic outlook towards Chinese auto markets will encourage domestic producers to ramp up efforts in R&D in this regard.