Novelis, the world’s largest producer of flat-rolled aluminum, reported it will restart the Oswego, N.Y., hot mill by December, weeks earlier than initially expected after extensive fire damage there on September 16. It had initially estimated the operation to be out of service until Q1 2026.
The Atlanta-based subsidiary of Hindalco Industries Ltd. estimated in its Q2 2026 earnings statement a cash-flow disruption of $550-650 million for the year due to the fire, adding that it is working to minimize the supply disruption to its customers.
"We are grateful for the swift response and dedication of our teams, as well as the collaboration of our customers, industry peers and equipment suppliers," stated president and CEO Steve Fisher. "Despite this unexpected challenge, we remain confident in the strength of our business, the resilience of our team, and our ability to adapt and recover."
The September fire brought extensive damage to the plant structure and particularly the hot-rolling mill, which is a major regional supplier of aluminum sheet for automotive bodies.
Rolling aluminum has long been a hazardous process because the lubricants used are highly flammable, and the heat or friction that is generated by the process may spark fine aluminum flakes or powder. Novelis has not identified the cause of the September fire, saying that it remains under investigation.
The Oswego plant reportedly supplies about 40% of all aluminum sheet products used by U.S. automakers. The Ford F-150 program is particularly hard hit, with production of the F-150 lightning on hiatus as a consequence. Ford stated it could lose as much as $2 billion due to lost production during the third quarter of this year.
Other automakers affected by the supply disruption include Stellantis, General Motors - which explained the impact would be minimal because it has alternative suppliers - Toyota, Hyundai, and Nissan.
The upstate New York plant is Novelis’ largest in North America, a vertically integrated operation that remelts aluminum, casts ingots, and rolls and finishes a range of hot- and cold-rolled products for automotive manufacturing, beverage can production, and various other applications. Its total annual output is more than one billion pounds of aluminum.
