Novelis Announces $200 Million Expansion in New York to Meet Rising Automotive Demand
ATLANTA, July 25, 2011 /PRNewswire/ -- Novelis, the world's largest producer of rolled aluminum, today announced it will invest approximately $200 million to expand its rolling operations in Oswego, NY, in response to escalating demand for aluminum sheet in the United States. The expansion will result in a capacity increase of 200 kt, five times the company's North America capacity for producing aluminum sheet for the automotive industry.
Novelis is the world leader in aluminum automotive sheet, with more than 50 percent of the global market share for aluminum sheet used for making structural components and exterior body panels. Novelis aluminum can be found in 117 different vehicle models produced by leading automakers around the globe.
"We are proud to continue building upon our leadership in providing technically innovative aluminum sheet for the global automotive market," said Philip Martens, President and CEO of Novelis. "As the world's number one supplier of auto sheet, we are in a unique position to support the growing demand from automakers for the use of lighter weight materials in new vehicle designs. This world class expansion will provide these customers with highly engineered aluminum sheet designed to significantly improve the fuel economy and reduce emissions of new vehicles currently in development, while also reducing the lifecycle carbon footprint of their overall operations."
Aluminum is the sustainable choice for vehicles because of its recyclability and low weight. Lighter weight vehicles are a major part of the solution to the challenge that auto makers face in reducing emissions and improving fuel economy. Novelis will construct two new high-performance aluminum processing lines for automotive applications. The Oswego facility is an integrated recycling, hot rolling and cold rolling complex producing aluminum sheet for the beverage can, automotive and building construction industries.
The move reinforces Novelis' sustainability commitment to reduce its carbon footprint as well as those of its customers. Cars made with more aluminum use less fuel and produce less greenhouse gas emissions. Novelis will also make a strong effort to include recycling initiatives into all new sheet contracts.
Novelis expects to hire approximately 100 new employees at Oswego over the next two years leading to start-up of the new equipment in the summer of 2013.
"Job growth and economic development are key to revitalizing New York's economy and have been a top priority for my administration," said Governor Andrew Cuomo. "Our goal is to make New York one of the most business friendly states in the nation. I congratulate Novelis on their expansion and applaud them for creating over 100 new jobs for the people of Oswego."
In addition to incentives from the State of New York and Empire State Development, the County of Oswego Industrial Development Agency is providing additional support.
The global automotive sector is transforming the vehicle manufacturing process to contain larger percentages of aluminum sheet, causing higher demand for the material. To meet new fuel economy standards, North American auto makers are using more aluminum in cars to make them lighter and more fuel efficient without affecting size. New regulations in development by the U.S. Department of Transportation and the U.S. Environmental Protection Agency are challenging automakers to boost the fuel economy of their vehicles to around 35.5 miles per gallon by 2016 and reduce emissions.
Fact sheets on Novelis, the company's work in automotive, the Oswego plant, photos and B roll can be found in the novelis.com media center at http://www.novelis.com/en-us/Pages/Press-Kits.aspx.
Statements made in this news release describing Novelis' intentions, expectations or predictions may be forward-looking statements within the meaning of securities laws. Examples of forward-looking statements in this news release include those regarding Novelis' expectations about the anticipated capacity increase resulting from our investment and the expected completion date of the project. Novelis cautions that, by their nature, forward-looking statements involve risk and uncertainty. We do not intend, and we disclaim any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise. Important risk factors which could impact outcomes are included under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended March 31, 2011.
Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The Company operates in 11 countries, has nearly 11,000 employees and reported revenue of $10.6 billion in fiscal year 2011. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial, electronics and printing markets throughout North America, Europe, Asia, and South America. Novelis is a subsidiary of Hindalco Industries Limited (BSE: HINDALCO), one of Asia's largest integrated producers of aluminum and a leading copper producer. Hindalco is a flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. For more information, please visit www.novelis.com.
SOURCE Novelis Inc.