Novelis Inc., has announced plans to build an approximately $300 million automotive aluminium sheet manufacturing facility in Guthrie, Kentucky.

The greenfield facility, with an annual nameplate capacity of 200,000 metric tons, will include heat treatment and pre-treatment lines, which prepare aluminium for use in vehicle parts such as body-in-white, hoods, doors, lift gates and fenders. The company expects to break ground in early spring and create approximately 125 jobs at the new facility, which is slated to open in 2020.

“Today’s announcement by Novelis to expand its capabilities in North America is a strategic decision fully supported by the Aditya Birla Group to maintain the group’s leadership position in the global metals sector and its ongoing commitment to serve both upstream and downstream customers,” said Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited. “We are immensely proud of this latest investment and look forward to seeing it flourish.”

“As the global leader in automotive aluminium sheet production, Novelis is leveraging its strong balance sheet, technical expertise and proven product excellence to make this strategic investment that will ultimately add to its unmatched manufacturing footprint and deliver innovative solutions to the marketplace,” said Satish Pai, Managing Director, Hindalco Industries Limited and a member of the board of directors of Novelis, Inc.

This investment is the latest addition to Novelis’ extensive network of automotive finishing lines. Demand for automotive aluminium is expected to rise according to the 2017 Ducker Worldwide survey projection that aluminium content in North American passenger vehicles, particularly light trucks and SUVs, will increase 42 percent from its 2015 level by the year 2028.

“Aluminium is a growing material of choice for the automotive industry worldwide as auto manufacturers continue to demand more and more aluminium to produce lighter, safer and stronger cars, trucks and SUVs,” said Steve Fisher, President and CEO, Novelis, Inc. “Novelis will continue to innovate alongside our automotive customers to lightweight the vehicles of today while looking ahead to meet the mobility needs of the fleet-based economies of tomorrow.”

The new facility will be in close proximity to Logan Aluminium Inc., a Novelis joint venture in Russellville, Ky., and several nearby automotive manufacturing plants.

“We are excited to see Novelis, a leader in the global aluminium industry, expand its Kentucky presence and bring new advanced-manufacturing jobs to Todd County,” said Kentucky Governor Matt Bevin. “Partnering with companies like Novelis, who are investing here for the long term, supports the state’s economy and advances our efforts to make Kentucky the center for engineering and manufacturing excellence in America. We are grateful to Novelis for this tremendous vote of confidence in our workforce and for broadening their footprint in Kentucky.”

More than 200 different vehicle models on the road today feature Novelis aluminium. Many of the world’s premier brands including FCA, Ford, GM, Jaguar Land Rover and Toyota have called on Novelis to help design the safest, strongest and most durable cars and trucks.