Novelis, a subsidiary of Hindalco Industries, has announced a further investment of $375 million for expanding its rolling and recycling capabilities at its aluminum factory in Zhenjiang, China.

The aluminum rolling and recycling company said that the investment will totally integrate its automotive business to supply low-carbon, sustainable aluminum to automakers in Asia.

The expansion of the aluminum factory includes upgrades to the existing hot mill, installation of a new cold mill along with a new recycling and casting center. The upgrades are said to enable Novelis to implement closed-loop recycling partnerships with its Asian auto customers.

According to the Hindalco subsidiary, recycling aluminum consumes 95% less energy compared to primary aluminum production and is an important component of its sustainability commitment to cut down carbon emissions by 30% by 2026 and become carbon neutral by the year 2050.

Novelis is likely to break ground on the Zhenjiang aluminum plant expansion early next year and wrap it up in mid-2024.

The expansion is said to be a key strategic synergy for the company’s acquisition of Aleris in 2020, and will help create a fully integrated supply chain for the Chinese automotive market between its Zhenjiang rolling and recycling plant and Changzhou automotive finishing facility.

Besides, the expansion will also free up rolling capacity at its Ulsan aluminum joint venture in South Korea to cater to the can and specialty products markets.

Sachin Satpute — Executive Vice President and President of Novelis Asia said: “China is one of the fastest-growing vehicle markets in the world and its automakers are gaining market share across Asia.

“Therefore, this strategic investment is needed to keep pace with growing demand, particularly from EV companies. Most importantly, the creation of the country’s first automotive closed-loop recycling system advances our purpose of ‘Shaping a Sustainable World Together’ while aligning with China’s ambitious carbon reduction goals.”

Earlier this year, Novelis had announced an investment of around $300 million for the expansion of its automotive aluminum capabilities and recycling operations at the Zhenjiang aluminum factory.

  Aluminum, China, Hindalco Industries, Novelis, Sachin Satpute, Zhenjiang