Aluminum recycling and rolling provider Novelis will invest $300mn to develop its automotive aluminum facilities and recycling operations at its Zhenjiang plant in China’s Jiangsu province.
Under an agreement signed by Novelis with the Zhenjiang Jingkou Industrial Zone on Feb 4, the fully integrated site will expand its hot mill, add a cold mill, offer improved blends of lightweight aluminum, and launch the first closed-loop recycling structure for the auto industry in the country.
The aluminum company will mix local resources including recycling, casting, rolling, and finishing services to keep up with the growing demand for recycled and rolled aluminum in China.
The company plans to commence the project by mid-2021and once finalized a fully integrated supply chain will be provided to its automotive customers, including recycling, coil production, and heat treatment, Novelis indicated in a statement on Feb 10.
The agreement is aimed at extending the recycler’s reach in China while also supporting improved relationships with customers while delivering its products in Asia’s rising market. It also indicates Novelis’ objective to support the auto market in Asia that is estimated to increase to a third of global demand by 2025.
Novelis also remains on track to back China’s target of cutting carbon emissions by 2030 and hopes to impact its ability to reach carbon neutrality by 2060. The recycler cited investing in aluminum recycling with the use of a closed-loop structure to cut carbon dioxide emissions substantially.