Novelis taps into e-vehicle potential
As China clamps down on pollution, companies such as aluminum producer Novelis Inc see a business opportunity.
“The driving force behind our strategy in China is the nation’s increasingly strict policy against pollution,” said Pierre Labat, vice-president of global automotive at the Atlanta, Georgia-based company in the United States.
Novelis is expanding its investment in the world’s second biggest economy, particularly in the electric vehicle sector.
The group, which has $10 billion in annual revenue and 24 operating facilities in 10 countries, chose Changzhou, Jiangsu province, in 2012 to open its first manufacturing facility in China, because of logistics convenience and government incentives.
With an initial $100 million investment, the plant now boasts an annual production capacity of 120,000 tons of heat-treated aluminum sheet. The factory serves a rapidly growing demand for rolled aluminum used in lighter, more fuel-efficient vehicles.
To help address pollution and reduce emissions, China continues to issue strict regulations and has proposed a radical amendment to increase the manufacture and sale of e-vehicles.
Auto industry authorities will push manufacturers to meet aggressive sales targets for plug-in and hybrid vehicles of 7 percent of all sales in 2020 and 19 percent by 2025.