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.

"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.