Novelis lines up $300 million for US aluminium plant

MUMBAI: Novelis, the American subisidiary of Aditya Birla Group flagship Hindalco, on Tuesday announced that it will invest around $300 million in an automotive aluminium sheet manufacturing facility in Guthrie, Kentucky, as part of its plans to expand manufacturing for automotive purposes to meet rising demand.

The announcement is in line with Hindalco’s commitment to grow Novelis’ auto shipments to 25% of total production capacity. The project is expected to get commissioned by 2020 and will have a capacity of 200,000 tonnes to prepare aluminium for vehicle parts.

ET had reported in September last year that Hindalco was expected to invest in expanding its auto offerings in the US and Chinese markets through its subsidiary Novelis.


“Today’s announcement by Novelis to expand capabilities in North America is a strategic decision fully supported by the Aditya Birla Group to maintain the group’s leadership position in the global metals sector and its ongoing commitment to serve both upstream and downstream customers,” Kumar Mangalam Birla, chairman of Aditya Birla Group, said in a release.