Inc. will lean toward brownfield heat-treat expansions instead
of greenfield hot-mill additions as it aims to boost automotive
sheet capacity in the United States and Europe, the
companys top executive said.
expansions come as the Atlanta-based aluminum roller and
recycler looks to expand its automotive portfolio from about 7
percent today to 25 percent in the next four to five years,
Novelis president and chief executive officer Philip Martens
told AMM Nov. 11.
current mix outside of automotive is 65- to 70-percent can,
with the balance being regional specialty and light-gauge
products today, Martens said. The can mix is expected to dip to
50 percent in the future, he said.
looking at how best to handle that (automotive) growth and that
leads us to a lot of different analyses and evaluations. We are
well down the road on a couple of them. And were
finalizing those over the balance of this quarter," Martens
said, referring to potential growth projects in the United
States and Europe.
Martens declined to
provide specific details about any of the potential expansions
but said they "will be automotive" and would likely involve
additional automotive finishing capacity. Any new expansion
will likely be brownfield given the companys recent
success with such projects, Martens said.
Novelis should have
enough global hot-mill capacity for the next two to three
years, Martens said. In the meantime, Novelis isnt
concerned about potential automotive aluminum overcapacity even
as competitors expand as well, he said.
Novelis is also making
progress in scrap processing, Martens said, including,
"technical advancements ... in separation of scrap, pulling out
aluminum from a variety of materials that we bring in as well
as melt-loss efficiency improvements and casting improvements,"