All existing orders and firm agreements confirmed prior to August 7, 2014 will be honoured throughout the contract period.
The automotive price increase is in addition to the previously announced pricing adjustment made on January 1, 2014 of $0.11 per pound for 6000-series, 5182-series and 5000-series coated automotive alloys.
"To support the rapidly growing automotive market demand, Novelis remains committed as the industry leader in announced capacity investments in North America, Europe and Asia," said Marco Palmieri, Senior Vice President, Novelis and President, Novelis North America. "In North America, we've commissioned two new auto finishing lines in Oswego, New York that are in full production and are completing construction of a third auto finishing line increasing our regional capacity by up to 360,000 tons per year. That's seven times our current production capacity and an important milestone to remain the industry leader as North American automotive market demand is expected to increase twenty-fold in the next 10 years."
In addition to the Oswego expansion, the automotive finishing line in Changzhou, China, is on track to be in production in the next 90 days and will have a capacity of 120,000 tons. The company has also broken ground on a new automotive finishing line in Nachterstedt, Germany. When all of the new lines are commissioned by late 2015, Novelis' global automotive sheet capacity will reach about 900,000 tons per year, a three-fold increase from just a year ago.
Novelis is the world's leading provider of aluminium automotive sheet, used for making structural components and exterior body panels. Novelis aluminium can be found in more than 180 different vehicle models produced by leading automakers around the globe.