Hindalco arm Novelis to invest $205 m in US, Germany.

Novelis Inc, the US subsidiary of Hindalco Industries Ltd., plans to invest $205 million (around Rs. 1,270 crore) to expand its aluminium automotive grade production capacity in the US and Germany.

The company will build new finishing lines at its plants in Oswego, New York, and Nachterstedt, Germany, dedicated to the production of aluminium automotive sheets.

The two new lines will each have a capacity of 1,20,000 tonnes a year.

The latest expansions come amid escalating global demand from automakers for aluminium sheets, which the company expects to grow by more than 30 per cent a year through the end of the decade, Novelis said in a press release.

When the new lines are commissioned in late 2015, Novelis' global automotive sheet capacity would be about 900,000 tonnes a year, a three-fold increase from a year ago.

HBL