Automotive ramp-up comes with risks: Novelis

Aug 07, 2014 | 07:13 PM | Nathan Laliberte

Tags  Novelis, aluminum, automotive, Ford Motor, F-150, Jaguar Land Rover, Philip Martens, SAP China

NEW YORK — As demand for automotive aluminum continues to climb, issues tied to supply chain management, capacity restrictions and preparation for future conversions to aluminum will continue to present major challenges for global aluminum producers, according to Novelis Inc.’s top executive.

The myriad of ramp-up initiatives associated with meeting demand for automotive sheet—from software upgrades to plant retooling—come with very significant start-up costs, president and chief executive officer Philip Martens told AMM in an exclusive interview.

"Not every company can do this," he said. "You have to have scale and you have to have the ability to put your balance sheet at play and you have to have the ability to carry this operational cost, the people cost and the start-up cost for a couple of years before it all starts."....

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