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The Korea Herald
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THE INVESTOR
March 29, 2024

Industrials

Novelis forms JV in Korea with Kobe Steel

  • PUBLISHED :May 10, 2017 - 14:05
  • UPDATED :May 10, 2017 - 14:05
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[THE INVESTOR] US-based Novelis announced on May 10 that it is selling 50 percent stake in its aluminum plant in Ulsan to Japan’s Kobe Steel for 350 billion won (US$ 315 million).

The two companies will jointly operate the firm, Ulsan Aluminum, with each responsible for its metal supply and commercial relationships separately.

Novelis hopes to utilize the JV to increase its production capacity at Ulsan more efficiently, which will continue to focus on automotive and specialty sheets to meet the increasing demand for lightweight rolled aluminum products across Asia. The transaction is expected to enhance Novelis‘ strategic flexibility and reduce its net debt.

“The JV will enable strategic flexibility to invest in potential future market opportunities,” said CEO Steve Fisher.

Novelis is a global leader in aluminum rolled products that produces a variety of aluminum materials, from beverage cans to flat screen TVs. The company is a subsidiary of Hindalco, an industry leader in aluminum and copper of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India.

By Alex Lee (alexlee@heraldcorp.com)

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