Novelis Announces $ 375 Million Expansion of China Automotive Sheet Metal Production and Recycling Business

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Investment to increase the company’s manufacturing capacity and create the first closed-loop automobile recycling system in China

ATLANTA, 28 October 2021 / PRNewswire / – Novelis Inc., the global leader in aluminum rolling and recycling, today announced a $ 375 million investment to expand the rolling and recycling capacities of its Zhenjiang plant by China. The investment will fully integrate the company’s automotive business to provide automotive manufacturers in Asia with durable low carbon aluminum from Novelis.

(PRNewsfoto / Novelis Inc.)

The expansion includes upgrades to the existing hot rolling mill, a new cold rolling mill, and a new recycling and casting center, which will allow the company to implement closed-loop recycling partnerships with customers automobiles in Asia. Recycling aluminum uses 95% less energy than primary aluminum production and is a key part of Novelis’ sustainability commitment to reduce carbon emissions by 30% by 2026 and become carbon neutral by 2050.

“Zhenjiang’s expansion reaffirms our financial strength and our commitment to reinvest for growth while advancing our business towards the circular economy,” said Steve fisher, President and CEO of Novelis, Inc. “With this investment, we will further strengthen our position as a leading supplier of automotive aluminum sheet in Asia. We will also be in a better position to support the rapidly growing electric vehicle market and their need for lightweight, low-carbon aluminum. “

Novelis plans to begin 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 plant and Changzhou automotive refinishing plant – from coil production to heat treatment to closed loop recycling. It will also free up the rolling capacity of the company’s Ulsan Aluminum joint venture to South Korea to serve the cans and specialty products markets. The Zhenjiang plant will continue to serve the aerospace and industrial sheet industries.

China is one of the fastest growing automotive markets in the world and its automakers are gaining market share through Asia,” noted Sachin Satpute, executive vice president and president of Novelis Asia. “Therefore, this strategic investment is necessary to keep pace with growing demand, especially from electric vehicle companies. Most importantly, the creation of the country’s first closed-loop auto recycling system advances our goal of “shaping a sustainable world together” while aligning with from China ambitious carbon emission reduction targets. “

Novelis is the world’s largest supplier of automotive aluminum sheet with over 40 years of experience. Over the past three years, the company has increased its global automotive capacity by 250% in response to growing demand for durable, lightweight aluminum solutions from automakers.

About Novelis

Novelis Inc. is driven by our goal of shaping a sustainable world together. We are a global leader in the production of innovative aluminum products and solutions and the world’s largest aluminum recycler. Our ambition is to be the leading provider of sustainable and low carbon aluminum solutions and to achieve a fully circular economy by partnering with our suppliers, as well as our customers in the aerospace, automotive, beverage cans and specialties across North America, Europe, Asia and South America. Novelis achieved net sales of $ 12.3 billion in fiscal year 2021. Novelis is a subsidiary of Hindalco Industries Limited, a leader in the aluminum and copper industry, and the flagship metals company of the Aditya Birla Group, a multinational conglomerate based in Bombay. For more information, visit novelis.com.

Forward-looking statements

Statements made in this press release that describe Novelis’ intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this press release include plans to invest approximately $ 375 million in our Zhenjiang plant and to add a cold rolling mill and a recycling and casting center. Novelis cautions that, by their nature, forward-looking statements involve risks and uncertainties. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Significant risk factors that could affect results are included under “Risk Factors” on the Company’s Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended March 31, 2021.

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SOURCE Novelis Inc.


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