NACHTERSTEDT, Germany,
April 7, 2014 /PRNewswire/
-- Novelis, the world leader in aluminum rolling and
recycling, today celebrated the ground-breaking ceremony for a new
automotive sheet finishing line at its Nachterstedt, Germany, facility. Erwin Mayr, Senior Vice President of Novelis and
President of Novelis Europe, made the symbolic shovel turn with
Reiner Haseloff, Prime Minister of
the German federal state of Saxony-Anhalt.
The EUR 62 million expansion is in
response to the steadily growing demand for aluminum automotive
sheet for light-weight vehicle structures and body panels. The new
line will add 120,000 metric tons of annual capacity to the
Nachterstedt plant's automotive output. Novelis expects
demand for aluminum automotive sheet in Europe to increase by an average of 15 percent
per year over the next five years as carmakers focus on strategies
to improve vehicle fuel efficiency and reduce CO2
emissions.
The expansion, which is scheduled to come on line in the second
half of 2015, will create up to 120 new jobs and boost Novelis'
annual automotive production capacity for aluminum sheet in
Europe to well over 350,000 metric
tons. The new production line will make use of the existing
infrastructure, specialized staff and logistics solutions in order
to generate extensive synergies. In addition to existing automotive
capacity at the Nachterstedt plant, Novelis also produces
automotive sheet at its Sierre, Switzerland, and Goettingen, Germany, plants.
"This investment will enable us to strengthen our leading market
position in the automotive sector and enhance our position as a
strong partner of the automobile industry", said Mayr. "Novelis is
committed to meeting the growing demand in this market and we're
aggressively increasing our capacity to produce automotive sheet in
Europe and across the globe."
This investment, coupled with the site's start-up this summer of
the world's largest aluminum recycling facility, will further the
ongoing development of the company's automotive closed-loop
business model. Today, as much as 50 percent of automotive sheet
sold to automakers is left over after a manufacturing plant stamps
out automotive parts. The company is working closely with its
customers to return this material directly back to Novelis for
recycling, streamlining the materials supply chain while reducing
the total carbon footprint of the entire automotive production
cycle.
Prime Minister Dr. Reiner
Haseloff praised the dynamic development of Novelis in
Nachtersted, stating: "The construction of the aluminum recycling
center was not even completed before the investment in the new
automotive production line was announced. In total, this creates
more than 300 new jobs at this location within a few years. Thus,
the demand for skilled workers in the coming years will certainly
remain high. This highlights that the future opportunities for
young people in Saxony-Anhalt has never been better."
Novelis is the world's leading provider of aluminum automotive
sheet, which auto manufacturers are turning to at a dramatically
increasing rate for structural components and exterior body panels.
Novelis aluminum can be found in more than 180 different vehicle
models produced by leading automakers around the globe.
The company is investing around the world to boost its
automotive finishing capabilities. In addition to this new line in
Nachterstedt, the company will open a greenfield automotive line in
Changzhou, China later this year,
and is launching construction of a third automotive line at its
plant in Oswego, NY, complementing
the two lines commissioned there in 2013. When all of the new lines
are commissioned in late 2015, Novelis' global automotive sheet
capacity will reach approximately 900,000 tons per year, a
three-fold increase from just a year ago.
About Novelis
Novelis Inc. is the global leader in
aluminum rolled products and the world's largest recycler of
aluminum. The company operates in nine countries, has approximately
11,000 employees and reported revenue of $9.8 billion for its 2013 fiscal year. Novelis
supplies premium aluminum sheet and foil products to automotive,
transportation, packaging, construction, industrial and consumer
electronics markets throughout North
America, Europe,
Asia and South America. Novelis is a subsidiary of
Hindalco Industries Limited (BSE: HINDALCO), one of Asia's largest integrated producers of
aluminum and a leading copper producer. Hindalco is a flagship
company of the Aditya Birla Group, a multinational conglomerate
based in Mumbai, India. For more
information, visit www.novelis.com and follow us on Twitter at
twitter.com/Novelis.
Forward-Looking Statements
Statements made in this
news release which describe Novelis' intentions, expectations or
predictions may be forward-looking statements within the meaning of
securities laws. Examples of forward-looking statements in this
news release include our statement that the expansion will increase
Novelis' annual automotive production capacity for aluminum sheet
in Europe to over 350,000 metric
tons. Novelis cautions that, by their nature, forward-looking
statements involve risk and uncertainty. 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.
Important risk factors which could impact outcomes are included
under the caption "Risk Factors" in our Annual Report on Form 10-K
for the year ended March 31,
2013.
SOURCE Novelis Inc.