Novelis Invests $300 Million in New Kentucky Aluminum Sheet Plant

SEATTLE (Scrap Monster): The Atlanta, Georgia-headquartered global leader in rolled aluminum products and recycling, Novelis, Inc. has announced its decision to build a new automotive aluminum manufacturing plant in Guthrie, Kentucky. The ground breaking of the facility is scheduled to be held early spring. Novelis expects to complete construction within two years, so as to open the plant in 2020.

According to press release issued by the company, it expects an investment of nearly $300 million to build the new plant, with a projected capacity of 200,000 metric tons per annum. The plant will comprise of state-of-the-art heat treatment and pre-treatment lines to prepare aluminum to be used in vehicle parts. The proposed Guthrie facility is expected to create almost 125 new jobs in the region.

Novelis already has two locations in Kentucky, employing nearly 1,260 people. The Berea recycling facility, opened in 1989, processes used beverage cans to produce aluminum to be used in the manufacture of new cans. Also, Logan Aluminum Inc.- a joint venture with Tri-Arrows Aluminum, serves as a fully integrated rolled aluminum facility. With the addition of its new Gutherie facility, Novelis will expand its Kentucky operations from two to three locations. Incidentally, the close proximity of the new facility to its Logan Aluminum Inc facility offers logistical benefits.

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Commenting on the new investment, Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc stated that the Aditya Birla Group, of which Novelis Inc. is a part, is immensely proud of its latest investment. The strategic decision will help Novelis to expand its capabilities in North America. Further, it will help the group to maintain its leadership position in global metals sector. The investment reiterates its ongoing commitment to better serve its upstream and downstream customers, Birla added.

As per studies, the aluminum content in North American passenger vehicles is expected to witness tremendous growth of 42% by 2028, upon comparison with 2015 levels. The new automotive finishing line will empower the company to meet the growing automotive market demand, along with sticking to its sustanability goals.

Novelis Inc. is the global leader in aluminum rolled products and the world's largest recycler of aluminum.