Aluminium recycling and rolling company Novelis has announced that it is to invest an additional $205 million (£126 million) to install new finishing lines at its plants in Oswego, New York, and Nachterstedt, Germany.
Novelis said the investments are in response to the escalating global demand from automakers for aluminium sheet, which it estimates will increase by more than 30 per cent per year ‘through the end of the decade’.
Oswego investment
The company recently commissioned two new finishing lines at its Oswego plant and will now invest approximately $120 million (£74 million) to install a third aluminium automotive sheet finishing line, expand its recycling operations for automotive scrap, and make ‘other system and facility upgrades’.
Novelis estimates that the investment will result in 90 new jobs at the plant and will increase the company's North American automotive sheet capacity to more than 400,000 metric tonnes in just two years.
In addition to incentives from the State of New York and Empire State Development, the County of Oswego Industrial Development Agency is also providing support for this investment.
Nachterstedt investment
The remaining $85 million (£52 million) will be use to install one new finishing line at the rolling mill in Nachterstedt, Germany, increasing the company's aluminium automotive sheet capacity in Europe to almost 350,000 metric tonnes. This expansion will create up to 120 new jobs at the plant.
Novelis is currently constructing a $250 million (£157 million) aluminium recycling and casting centre next to its Nachterstedt rolling mill, which, once completed (in ‘mid-2014’) is expected to become the ‘world's largest’ aluminium recycling centre.
The Federal State of Saxony-Anhalt, Germany, is providing support for this investment.
‘Partner of choice for world-class automotive manufacturers’
Speaking of the investment, Novelis President and Chief Executive Officer Phil Martens, said: "With the addition of these two new lines, we have invested nearly $550 million to expand Novelis's global automotive capacity in the last two years alone.
"This commitment, backed by our history of automotive technology innovation, volume production experience and unmatched global footprint, strengthens our recognised leadership position as the partner of choice for world-class automotive manufacturers."
Earlier this year, Novelis announced that it has become the ‘world’s largest recycler of aluminum’ and has increased the recycled content of its products from 33 per cent to 43 per cent.
It is currently constructing a new plant in Changzhou, China.
Read more about Novelis.
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