Novelis Expands Automotive Aluminum Capabilities with Approximately $300 Million Investment in Kentucky
Novelis Inc., the world leader in aluminum rolling and recycling, today announced plans to build an approximately $300 million automotive aluminum sheet manufacturing facility in Guthrie, Kentucky. The greenfield facility, with an annual nameplate capacity of 200,000 metric tons, will include heat treatment and pre-treatment lines, which prepare aluminum for use in vehicle parts such as body-in-white, hoods, doors, lift gates and fenders. The company expects to break ground in early spring and create approximately 125 jobs at the new facility, which is slated to open in 2020. “Today’s announcement by Novelis to expand its 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,” said Kumar Mangalam Birla, chairman of the board of directors of Novelis Inc. and chairman of the board of directors of Hindalco Industries Limited. “We are immensely proud of this latest investment and look forward to seeing it flourish.” “As the global leader in automotive aluminum sheet production, Novelis is leveraging its strong balance sheet, technical expertise and proven product excellence to make this strategic investment that will ultimately add to its unmatched manufacturing footprint and deliver innovative solutions to the marketplace,” said Satish Pai, Managing Director, Hindalco Industries Limited and a member of the board of directors of Novelis, Inc. This investment is the latest addition to Novelis’ extensive network of automotive finishing lines. Demand for automotive aluminum is expected to rise according to the 2017 Ducker Worldwide survey projection that aluminum content in North American passenger vehicles, particularly light trucks and SUVs, will increase 42 percent from its 2015 level by the year 2028. “Aluminum is a growing material of choice for the automotive industry worldwide as auto manufacturers continue to demand more and more aluminum to produce lighter, safer and stronger cars, trucks and SUVs,” said Steve Fisher, President and CEO, Novelis, Inc. “Novelis will continue to innovate alongside our automotive customers to lightweight the vehicles
of today while looking ahead to meet the mobility needs of the fleet-based economies of tomorrow.” The new facility will be in close proximity to Logan Aluminum Inc., a Novelis joint venture in Russellville, Ky., and several nearby automotive manufacturing plants. “We are excited to see Novelis, a leader in the global aluminum industry, expand its Kentucky presence and bring new advanced-manufacturing jobs to Todd County,” said Kentucky Governor Matt Bevin. “Partnering with companies like Novelis, who are investing here for the long term, supports the state’s economy and advances our efforts to make Kentucky the center for engineering and manufacturing excellence in America. We are grateful to Novelis for this tremendous vote of confidence in our workforce and for broadening their footprint in Kentucky.” More than 200 different vehicle models on the road today feature Novelis aluminum. Many of the world’s premier brands including FCA, Ford, GM, Jaguar Land Rover and Toyota have called on Novelis to help design the safest, strongest and most durable cars and trucks.
Issue of Equity Shares On Preferential Basis To Aditya Birla Group (Promoter Group) Entities For Rs. 32,500 Million
The Board of Directors of Idea Cellular Limited (Idea) today approved issuance of 326.6 million equity shares (face value of Rs.10 per share) at a price of Rs.99.50 per share (in accordance with SEBI ICDR Regulations) on preferential basis to the Promoter group entities Birla TMT Holdings Private Limited / Elaine Investments Pte. Ltd. (Singapore) / Oriana Investments Pte. Ltd. (Singapore) / Surya Kiran Investments Pte. Ltd. (Singapore). The aggregate capital infusion will be of Rs.32,500 million. Mr. Kumar Mangalam Birla, Chairman, Idea Cellular Limited, said, “The Aditya Birla Group remains committed towards the telecom business. The group is in the process of creating a large digital infrastructure and to contribute significantly towards fulfilment of the ‘Digital India’ vision of the Hon’ble Prime Minister. At a time when the telecom industry is going through a challenging environment, this equity infusion by the Group in Idea is another step towards reinforcing the group’s commitment.” The above equity issue is subject to shareholders and other regulatory approvals. The Extraordinary General Meeting (EGM) of shareholders is to be convened on 30 January 2018. The issue is expected to be complete by early February 2018, post which the shareholding of promoter group in Idea will increase to 47.2 per cent from existing level of 42.4 per cent. Separately, the Board has also constituted a committee of Board members to evaluate potential routes for raising further capital of up to Rs.35,000 million including, among others, further Preferential Issue, Qualified Institutional Placement (QIP), Rights Issue. Appropriate disclosures will be made once the Board approves such issuance of additional capital based on the recommendations of the Committee. The proposed capital raising along with recent announcement of Idea’s standalone towers sale to ATC and the potential monetisation of Idea’s 11.15 per cent stake in Indus Towers, will augment the long term capital resources of the company. Idea remains committed to participate in digital opportunities and is aggressively expanding its wireless broadband coverage and capacity, with focus on 4G services. During the first nine months of the financial year 2017-18, Idea has added over 33,500 wireless broadband sites and the current 143,500 broadband sites now, cover 620 million Indian population (52 per cent of population). Idea is also moving fast to launch its VoLTE services during calendar year 2018.
About Idea Cellular Limited
Idea Cellular is the third largest wireless operator in India with a revenue market share of 16.2 per cent (Q2FY18). Idea is listed on the National Stock Exchange (NSE), and the Bombay Stock Exchange (BSE) in India. Idea is part of the Aditya Birla Group, which is one of the largest business groups in India. The Aditya Birla Group is a conglomerate with operations in more than 35 countries and has businesses in, among others, mobile telecommunications, metals and mining, cement, carbon black, textiles, garments, chemicals, fertilisers and financial services industries.