Novelis Inc. plans to build an approximately $300 million automotive aluminum sheet manufacturing facility in Guthrie, Kentucky. The greenfield facility 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. The facility will have an annual nameplate capacity of 200,000 tonnes.
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% 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, Inc. “Novelis will continue to innovate alongside our automotive customers to lightweight the vehicles of today while looking ahead to meet the mobility needs of the fleet-based economies of tomorrow.”
Novelis has been making aluminum in Kentucky for 34 years. With the addition of its new Guthrie facility, Novelis will expand its operations in Kentucky from two to three locations. It’s other two facilities include Logan Aluminum, Inc. (jointly owned by Novelis and Tri-Arrows Aluminum), which is a fully integrated rolled aluminum facility serving the beverage can, automotive, and specialty markets, and its Berea plant (opened in 1989), which is a recycling facility that melts down used beverage cans to produce aluminum for new cans.
In addition to being nearby Logan Aluminum Inc., the new sheet facility will be in close proximity to several automotive manufacturing plants.
“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. “Partnering with companies like Novelis, who are investing here for the long term, supports the state’s economy and advances our efforts to make Kentucky the center for engineering and manufacturing excellence in America. We are grateful to Novelis for this tremendous vote of confidence in our workforce and for broadening their footprint in Kentucky.”
More than 200 different vehicle models on the road today feature Novelis aluminum. Many of the world’s premier brands including FCA, Ford, GM, Jaguar Land Rover and Toyota have called on Novelis to help design the safest, strongest and most durable cars and trucks.
“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 Limited and a member of the board of directors of Novelis, Inc.
“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 Inc. and chairman of the board of directors of Hindalco Industries Limited. “We are immensely proud of this latest investment and look forward to seeing it flourish.”
Novelis expects to break ground in early spring of this year, with the aluminum sheet facility slated to open in 2020.