The rolling expansion will include investments in both hot rolling and cold rolling operations. It will increase the company’s sheet capacity in Asia by 50% to 1Mt/y.

The new capacity is expected to come on stream in late 2013.

The expansion will also include the construction of a recycling centre for used aluminium beverage cans and a casting operation with a production capacity of 220kt/y of sheet ingot.

Phil Martens, president and chief executive officer of Novelis, said: "Asia is the largest and fastest growing region in the world for aluminium, particularly in beverage cans, electronics and automobiles.

"Our analysis shows that expanding our capacity in Korea is the best approach to serve increasing demand from our customers in these regions," said Martens.