Novelis to invest around Rs1,900 crore in Kentucky

Aditya Birla Group company Novelis Inc plans to invest about $300 million to set up an automotive aluminum sheet manufacturing facility in Guthrie, Kentucky.

Novelis, global leader in aluminum rolling and recycling, expects to break ground in early spring and create about 125 jobs at the new facility, which is slated to open in 2020.

The greenfield facility, with an annual nameplate capacity of 200,000 metric tonne, will include heat treatment and pre-treatment lines, which prepare aluminum for use in vehicle parts such as body-in-white, hoods, doors, lift gates and fenders.

''Today's announcement by Novelis to expand its capabilities in North America is a strategic decision fully supported by the Aditya Birla Group to maintain the group's leadership position in the global metals sector and its ongoing commitment to serve both upstream and downstream customers,'' said Kumar Mangalam Birla, chairman of the board of directors of Novelis and chairman of the board of directors of Hindalco Industries Ltd.

''We are immensely proud of this latest investment and look forward to seeing it flourish,'' he added.

The new facility will be in close proximity to Logan Aluminum Inc, a Novelis joint venture in Russellville, Kentucky, and several nearby automotive manufacturing plants.

''As the global leader in automotive aluminum sheet production, Novelis is leveraging its strong balance sheet, technical expertise and proven product excellence to make this strategic investment that will ultimately add to its unmatched manufacturing footprint and deliver innovative solutions to the marketplace,'' said Satish Pai, managing director, Hindalco Industries and a director of Novelis.

Demand for automotive aluminum is expected to rise according to the 2017 Ducker Worldwide survey projection that aluminum content in North American passenger vehicles, particularly light trucks and SUVs, will increase 42 per cent from its 2015 level by the year 2028.

''Aluminum is a growing material of choice for the automotive industry worldwide as auto manufacturers continue to demand more and more aluminum to produce lighter, safer and stronger cars, trucks and SUVs,'' said Steve Fisher, President and CEO, Novelis.

''We are excited to see Novelis, a leader in the global aluminum industry, expand its Kentucky presence and bring new advanced-manufacturing jobs to Todd County,'' said Kentucky Governor Matt Bevin.

Novelis is the global leader in aluminum rolled products and the world's largest recycler of aluminum. The company operates in 10 countries, and employs about 11,000 personnel.