The company will invest about $120 million to install a third aluminum automotive sheet finishing line at its Oswego, NY plant. In addition, the company will expand its recycling operations for automotive scrap. When complete, the Oswego facility will devote 80 percent of its total capacity to serving the automotive market.
Novelis will also invest about $85 million to install one new aluminum automotive sheet finishing line at its Nachterstedt, Germany facility. This expansion will increase the company’s aluminum automotive sheet capacity in Europe to almost 350,000 metric tons. The expansion will also enhance the developing automotive closed-loop model between the company’s recycling operations in Latchford, UK, and what will be the world’s largest aluminum recycling center: a $250 million project at Nachterstedt expected to be commissioned in late 2014.
The two new lines in New York and Germany will each have a capacity of 120,000 metric tons per year. The company expects global demand from automakers for aluminum sheet to grow by more than 30 percent per year through the end of the decade.
The latest expansions are in response to the escalating global demand from automakers for aluminum sheet, which the company expects to grow by more than 30 percent per year through the end of the decade. Aluminum is a sustainable choice for structural components and exterior body panels because of its low weight and recyclability enabling reduced life cycle emissions, Novelis says.
When 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.
Both expansions will further 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, Novelis says. 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.