Hydro has announced plans to nearly double production capacity of a continuous annealing line at its aluminium rolled product plant in Grevenbroich (Germany) to meet surging demand in the automotive industry, the company said in a press release. Following the expansion, which is scheduled to be completed before the end of 2014, the annual production capacity of aluminium car body strips at the annealing line AL2 will reach 50,000 metric tonnes.
Significance: Hydro is expanding production capacity of aluminium car body strips to meet growing demand in the automotive industry. "We aim to confirm our position as a solid, substantial partner in this fastest-growing segment for aluminium," said Oliver Bell, Executive Vice-President, Rolled Products at Hydro. Major carmakers are increasing lightweight aluminium content in vehicles to meet stringent regulations related to fuel economy and emissions. Hydro is a major supplier of flat-rolled aluminium strips and sheets for automotive applications in the body, chassis and other components. The company expects demand for aluminium car body components in Europe to grow annually in the range of 15% to 20% between 2011 and 2018.
Hydro commissioned the AL2 annealing line at the Grevenbroich plant in 2008 to produce finished aluminium for body-in white (BIW) applications such as car bonnets, roofs and doors. The company will mainly add new heating and cooling zones to speed up the line and expand hourly output at the production line. However, Hydro fears that this may not be enough to meet the expected surge in demand in the coming years. “This project may not be enough to meet the boost in demand for aluminium body strips over the next few years,” Bell added.
