Japan's Kobe Steel will start commercial production of aluminum sheets used for car bodies in China in the first quarter of 2017, company spokesman Tatsuro Kanoh said Monday.
Kobe Steel's wholly owned subsidiary Kobelco Automotive Aluminum Rolled Products China started sample production in April 2016, to be tested by automakers worldwide ahead of commercial production.
"We have started sample shipments and are awaiting certification of automakers in Japan, Europe and North America," Kanoh said.
The Chinese plant, located in Tianjin Xiqing Economic Development Area in Tianjin city, has a nameplate capacity to produce 100,000 mt/year in total of 5000 and 6000 series aluminum alloy sheets, used for outer and inner panels of car body sheets.
Kobe Steel is the leading manufacturer of aluminum auto sheets in Japan, with a capacity of 30,000 mt/month sheet production in Moka city in Tochigi prefecture near Tokyo.
The company plans to launch sheet production in the US in 2017.
Market research firm Technavio said Friday the global aluminum market for automotive is expected to see a compound annual growth rate of 4.5% in the 2016-2020 period, on the back of demand for lightweight cars.
