Japanese steel producer Kobe Steel is expected to start aluminum sheets production
in the first quarter of the next financial year in China. The products are mainly used for the automotive industry, said company spokesperson Tatsuro Kanoh on Monday, June 11.

Kobelco Automotive Aluminum Rolled Products, which is Kobe Steel's wholly owned Chinese subsidiary started production on a trial basis in April 2016. The sample aluminum sheets manufactured by the company is to be sent for testing by global automakers ahead of commercial production.

According to market research firm, the global automotive aluminum market, driven by the demand for energy-efficient and lightweight cars, it is expected to grow at a CAGR of 4.5% during 2016-2020.

Kobe Steel also plans to launch automotive aluminum sheet production in the US in 2017.