Novelis: Auto Aluminum Demand Growing

Novelis announced today that it is investing $200-million to expand its aluminum rolling operations in Oswego, NY.

Novelis announced today that it is investing $200-million to expand its aluminum rolling operations in Oswego, NY.

This will result in a capacity increase of 200 kt, five times the company’s existing North American capacity for automotive aluminum sheet.

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Aluminum ingots in Oswego

Why?

Says 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”—which will include two new aluminum processing lines and is planned to go into operation summer 2013—“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.”

As fuel economy regs for 2016 become ever closer (e.g., 35.5 mpg), it seems as though the appeal of the light-weight material is growing.

And as there are on-going discussions about bumping that up to 56.5 mpg by 2025, one can only imagine that things like aluminum are going to be getting not only consideration, but implementation.