Novelis Inc has announced a $375 million investment to expand rolling and recycling capabilities at its Zhenjiang plant in China. The investment will fully integrate the company’s automotive business to supply automakers in Asia with Novelis’ low-carbon, sustainable aluminium and create the first automotive closed-loop recycling system in China.
The expansion includes upgrades to the existing hot mill, a new cold mill, and a new recycling and casting center, which will allow the company to implement closed-loop recycling partnerships with automotive customers in Asia. Recycling aluminium uses 95% less energy than primary aluminium production and is a key component of Novelis’ sustainability commitment to reduce carbon emissions 30% by 2026 and become carbon neutral by 2050.
“The Zhenjiang expansion reaffirms our financial strength and commitment to reinvesting for growth while also advancing our business toward the circular economy,” said Steve Fisher, President and CEO of Novelis.
“With this investment, we will further solidify our standing as the leading provider of automotive aluminium sheet in Asia. We will also be better positioned to support the rapidly growing electric vehicle market and their need for lightweight, low-carbon aluminium.”
Steve Fisher, President and CEO of Novelis
Novelis expects to break ground on the expansion in early 2022 and complete the project in mid-2024. As a key strategic synergy of the Aleris acquisition completed last year, the investment will create a fully integrated supply chain for the automotive market in China between our Zhenjiang rolling and recycling facility and Changzhou automotive finishing plant – from coil production to heat treatment to closed-loop recycling. It will also free up rolling capacity at the company’s Ulsan Aluminium joint venture in South Korea to serve the can and specialty products markets. The Zhenjiang plant will continue serving the aerospace and industrial plate sectors.
"China is one of the fastest-growing vehicle markets in the world and its automakers are gaining market share across Asia,” said Sachin Satpute, Executive Vice President and President of Novelis Asia. “Therefore, this strategic investment is needed to keep pace with growing demand, particularly from EV companies. Most importantly, the creation of the country’s first automotive closed-loop recycling system advances our purpose of ‘Shaping a Sustainable World Together’ while aligning with China’s ambitious carbon reduction goals.”
Novelis is the world’s largest supplier of automotive aluminium sheet with more than 40 years of experience. During the past three years, the company has increased its global automotive capacity by 250% in response to growing demand for sustainable, lightweight aluminium solutions from automakers.
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