Novelis has broken ground on its US$300m automotive aluminium sheet manufacturing facility in Guthrie, Kentucky, with a capacity of 200,000 tonnes and creating around 125 jobs.

The supplier will start producing automotive aluminium at the site in 2020.

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“The increased adoption of aluminium in cars, trucks and SUVs, coupled with more automotive manufacturing plants in the southeast makes Guthrie a strategic location to serve our customers,” said Novelis president and CEO, Steve Fisher.

“With the highly-skilled workforce in Kentucky, we believe our culture and commitment to building a sustainable world together will have a lasting and positive impact on this community.”

Novelis added the positive impact of tax reform in the US reinforced its decision to expand. A favourable economic environment has enabled Novelis to recently finalise key contracts totalling around US$60m for engineering plans, site preparation and equipment for the greenfield facility.

The plant will include heat treatment and pre-treatment lines, which prepare aluminium for use in vehicle parts such as body-in-white, bonnets, doors, lift gates and bumpers.

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