Novelis Breaks Ground On New $218M Facility In China

The facility in Changzhou National Hi-Tech District will expand the company’s production capacity of premium automobile aluminum sheets by 100,000 tons.

Novelis recently held a groundbreaking ceremony for a new facility at China’s Changzhou National Hi-Tech District. With the addition of $72 million to the registered capital and a further investment of $218 million, the facility will expand the operation’s production capacity of premium automobile aluminum sheets by 100,000 tons. Once construction of the facility is completed, Novelis’ total investment to date in Changzhou National Hi-Tech District will exceed $400 million.

Changzhou National Hi-Tech District
(Photo: Changzhou National Hi-Tech District)

Novelis (China) was established in Changzhou National Hi-Tech District in June 2012 and is India-based parent company Hindalco Industries’ first automotive aluminum sheet manufacturing facility in China. It is also the country’s first manufacturing base for premium automobile aluminum sheet.

Novelis (China) produces sheet that is mainly used in vehicle engine hoods, rear baffles, fenders, doors, roofs, chassis and structural parts. Current Novelis auto sheet customers include many international brands, among them, Audi, BMW, Ford, GM, Hyundai, Jaguar, Mercedes-Benz and Peugeot Citroen, as well as Chinese brands BAIC, BYD, Great Wall and SAIC. Production at the Novelis Changzhou facility for the year 2017 was valued at approximately $184 million.

With increasing orders for electric vehicles from NIO, Audi, Cadillac and Jaguar, the Novelis Changzhou facility is on track to reach full production by the end of the year. With the date fast approaching, the company decided to build a new rolled aluminum production line and equip it with first-class equipment, doubling the facility’s annual output of aluminum sheet. On May 31, 2018, Novelis (China) signed a new project investment agreement with Changzhou National Hi-Tech District, and added $72 million to its registered capital.

Changzhou National Hi-tech District is located in the heart of the Yangtze River Delta. There are more than 1,600 foreign-invested companies in the district. Recently, the district has been accelerating its development pace and intensifying efforts on construction of an industrial base, strengthening two of its pillar businesses: equipment manufacturing (precision machinery) and new materials.