In 2014, Atlanta-based Novelis, a leading producer of rolled aluminum and aluminum recycling, with 24 operating facilities in 10 countries chose Changzhou, Jiangsu province, as the site for its first manufacturing facility in China, due to the area's convenient logistics and government incentives for foreign investment and resources.
Starting with a $100 million investment from scratch, Novelis' Changzhou plant now boasts an annual production capacity of 120,000 tons of heat-treated aluminum sheet, and meets the rapidly growing demand from conventional and new generation automakers for rolled aluminum to be used in lighter, more fuel-efficient vehicles.
In March, Novelis expanded its portfolio of automotive customers into the EV sector by adding Shanghai-based electric vehicle startup NIO to its client pool, which already included Ford, Audi, Jaguar, Land Rover, GM, BMW, Mercedes Benz, Kia, and others.
The NIO partnership marks Novelis' first major commitment in the premium EV market in China, said Todd Summer, Novelis' vice-president of global research and development.
"We are now positioning ourselves as being more than a material supplier. We are collaborators and problem solvers to meet the increasing demand from a new generation of automakers," Summer said, adding that supply for NIO will come from the Changzhou plant.
Hiring around 200 local employees, the Changzhou plant can now serve auto manufacturers in China, Asia and beyond.
"We are considering expanding in Changzhou later this year," said Pierre Labat, vice-president for global automotive at Novelis. "It's very, very clear that the market there is mature enough for us to grow bigger."
Over the past five years, Novelis has relied solely on the Chinese local team to develop business. "The key to our success is that we have a strong local team and we've built a strong relationship with the local government," said Labat.
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