Novelis completes Korean expansion
Novelis completed a 2 year, $400 million expansion program in South Korea. The expansion of its Yeongju and Ulsan plants increases the company’s production capacity in the region by more than 50 percent to approximately one million metric tons of aluminum sheet per year.
Novelis began the expansion of its aluminum rolling and recycling facilities in 2011 to meet the rising demand for flat rolled aluminum in the Asian market. The expansion includes a hot rolling finishing mill, cold rolling mill, pusher furnace, high-speed slitter, annealing furnaces, in addition to the previously commissioned fully-integrated recycling center at Yeongju.
“The expansion enables Novelis to expand into new markets within the region,” said Shashi Maudgal, president, Novelis Asia. “We can now supply coils to our new automotive sheet finishing plant in Changzhou, China, which is expected to commence production in mid-2014.”
The demand for aluminum in the Asian automotive market is expected to exceed the 25 percent compound annual growth rate projected globally over the next 5 years, as more auto manufacturers move to build lighter, more fuel-efficient vehicles. The company’s expansion in South Korea will help it meet this rapidly growing market.
Novelis has a regional headquarters office in Seoul, operates four plants in South Korea, Malaysia and Vietnam and will commission its new Chinese facility in 2014.