Novelis taps into e-ve­hi­cle po­ten­tial

China Daily (Hong Kong) - - BUSINESS - By CHANG JUN in Atlanta, Ge­or­gia junechang@chi­nadai­lyusa.com

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.

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