It said it was in response to demand for aluminium sheet in the USA. The expansion will result in a capacity increase of 200kt/y, five times the company’s North America capacity for producing sheet for the automotive industry.

Novelis will construct two processing lines for automotive applications.

The Oswego facility is an integrated recycling, hot rolling and cold rolling complex producing sheet for the beverage can, automotive and building construction industries.

Novelis expects to hire 100 new employees at Oswego over the next two years leading to start-up of the new equipment in the summer of 2013.

The global automotive sector is transforming the vehicle manufacturing process to contain larger percentages of aluminium sheet, causing higher demand for the material.

To meet new fuel economy standards, North American auto makers are using more aluminium in cars to make them lighter and more fuel efficient without affecting size.