Novelis Inc, a subsidiary of Hindalco Industries, plans to build an automotive aluminium sheet manufacturing facility in Guthrie, Kentucky, with an investment of $30 million.

The greenfield facility, with an annual nameplate capacity of 200,000 tonnes, will include heat treatment and pre-treatment lines, which prepare aluminium 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 about 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.

“As the global leader in automotive aluminium sheet production, Novelis is leveraging its balance sheet, technical expertise and proven product excellence to make this strategic investment that will ultimately add to its manufacturing footprint and deliver innovative solutions to the marketplace,” said Satish Pai, MD, Hindalco Industries, and a member of the board of directors of Novelis, Inc.

This investment is the latest addition to Novelis’ network of automotive finishing lines. Demand for automotive aluminium is expected to rise, according to the 2017 Ducker Worldwide survey projection that aluminum content in North American passenger vehicles, will increase 42 percent from its 2015 level by 2028.

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