Novelis: China's Automotive Aluminum Will Usher In The Golden Period Of Development

- Nov 19, 2018-

SMM News: Novelis, a manufacturer of aluminum rolled products and a leader in aluminum recycling, participated in the Guangzhou International Auto Show for the first time, demonstrating its industry-leading automotive aluminum applications. “China's automotive industry is undergoing a more environmentally-friendly transition. As a globally advanced supplier of automotive aluminum, Novelis has always been committed to promoting the design and development of lightweight vehicles in the future, effectively helping local automakers produce a new generation of Sustainability and high performance cars," said Liu Qing, Managing Director of Novelis China and Vice President of Automotive China.

As a global manufacturer of aluminum rolled products, Novelis has the highest market share in the world, accounting for about 15%, and annual shipments are close to 3.5 million tons. In automotive aluminum applications, Novelis is also the industry leader, with a global market share of more than 50%. It is worth mentioning that the raw material profit of Novelis aluminum is more than 50% through recycling and recycling, which is the closed loop economy of low carbon manufacturing. In China, Novelis' first production plant was officially completed in Changzhou in October 2014. It is also the first automotive aluminum sheet heat treatment plant in China. Liu Qing said that the Chinese brand's demand for automotive aluminum has already ushered in an explosive period.

"It’s only a few thousand tons per year, and now it’s 80,000 tons in less than three years. This is already explosive growth. Of course, this total is still low compared with Europe and America. There are hundreds of thousands of tons in Europe. It is also hundreds of thousands of tons. But this number will change with more new models of aluminum being put on the market, and will go up to another step in the next three years. In the next 5-10 years, the amount of aluminum used in the Chinese automotive industry will be Will reach a very high platform. According to forecasts, the amount of aluminum used in China's automotive industry will exceed Europe in 2025, second only to North America."

With complete management processes, mature R&D technology, and extensive experience with industry-leading OEMs, Changzhou's customers include: BMW, Mercedes-Benz, SAIC-GM, FAW-Volkswagen, General Motors, Changan Ford and Kia Motors. Wait. The two domestic luxury models launched in 2016, the first is the domestic Cadillac CT6, which is the first model of the all-aluminum body that is put on the market in the strict sense of the Chinese market, which makes the white body and cover parts cover up to 62%. . In just a few months, the new Jaguar XFL was officially launched, with an aluminum rate of 75%. In 2017, Novelis announced the availability of innovative aluminum solutions for its ES8 pure electric SUV model to expand its supply of electric vehicles. The ES8's aluminum usage is over 96% in the entire body-in-white cover, which is rare in the world. According to statistics, the Weilai ES8's bicycle aluminum can rank third in the world.

Liu Qing said that in the future, with 100-kilometer fuel consumption reaching 5 liters in 2020, 4 liters of energy-saving emission reduction policies and regulations in 2025, and the introduction of double-point system, all car companies have higher requirements for lightweighting. In the next decade, aluminum and aluminum alloy materials will become the mainstream way to reduce the weight of the white body and cover parts of passenger cars. And "all-aluminum body" is no longer synonymous with a luxury brand. According to reports, the use of aluminum is currently under investigation. For example, A-class cars and smaller cars may not use all-aluminum body, but they will be applied to the inner and outer plates, tailgates, fenders and other coverings of the hood. Lightweight weight reduction requirements.

Liu Qing believes that the development of the electric vehicle market is a great opportunity for Novelis. The cooperation with Weilai is a benchmark for the company to enter the new car industry. According to Novelis' prediction for 2018, electric vehicles are expected to account for 20% of the total aluminum production business. "There are a lot of companies that are building new forces. The decision to use aluminum for lightweight is basically in contact with Novelis." Liu Qing said, "We also fully support these new forces. Of course. Different companies have different situations and stages, and the characteristics of Novelis need to be different. Novelis will treat them equally and provide them with corresponding technical support."

According to IHS data, more than 130,000 tons of aluminum sheet was consumed throughout Asia in 2017, of which the Chinese market accounted for 78,000 tons; in 2025, the demand in the Asian market will rise to more than 1.3 million tons. For Novelis, the planned 120,000 tons capacity of the Changzhou plant is now near saturation. Facing the growing demand in the Chinese market, in May this year, Novelis announced that it will invest 180 million US dollars to make the company in China. The annual output of auto body aluminum panels in Changzhou has doubled, and the expansion will begin in 2018 and will be fully operational in 2020.