Novelis Inc ground breakingUS - The supplier has started constructing a new plant in Guthrie, Kentucky. Costing US$300m, it will be used to house the production of aluminium sheet for the automotive industry.

"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," commented Steve Fisher, president and CEO of Novelis. "With the strong, 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."

The plant will stretch across an area of 400,000 sq.ft and will create around 125 new jobs. It will feature heat treatment and pre-treatment lines, which are used to prepare aluminium for use in vehicle parts such as body-in-white, hoods, doors, lift gates and fenders.

Production is due to start in 2020, with annual capacity topping 200,000 metric tons. Paul Banks has already been named plant manager. He was previously a unit manager at Logan Aluminium - a Novelis joint venture located in Russellville, Kentucky.

Novelis is one of many suppliers hoping to take advantage of aluminium growing use in the automotive industry. According to a report from Ducker Worldwide, total aluminium content is expected to grow from 397 pounds per vehicle (PPV) in 2015 to 565 PPV by 2028, representing 16% of total vehicle weight.