After the unfortunate fire incident in its Oswego aluminium plant, the renowned aluminium producer Novelis experienced a massive production setback. However, the aluminium producer, Novelis, now expects to restart operations in the same facility before the end of 2025, which is several months earlier than originally anticipated.
Image source: https://images.wsj.net/
Explore- Most accurate data to drive business decisions with 50+ reports across the value chain
The company had initially warned that the outage could continue into the first quarter of 2026. However, Chief Executive Steve Fisher said repair work had progressed faster than expected, and teams on site were now working extended hours to complete the rebuild by December.
“We have a lot of confidence in that,” Fisher said in a recent interview. “Crews are working round-the-clock, even through the night under portable floodlights. We’re feeling much better about the timeline now.”
Impact of the production halt on Ford and Stellantis
Novelis supplies roughly 40 per cent of the automotive aluminium sheet used in car production across North America. The disruption triggered temporary shutdowns at Ford and Stellantis plants in Michigan and Kentucky, sending thousands of employees onto short-term layoffs.
Ford’s F-150 pickup, the best-selling vehicle in the United States and a major profit driver for the company, is one of the largest consumers of Novelis’s aluminium sheet. The supply interruption has underscored how dependent the car industry has become on a small number of high-capacity rolling mills.
Extensive repairs are underway at the Novelis facility
Fisher said repair work includes replacing 40,000 square feet of roofing and installing new steel trusses. Most of the repair parts — around 2,500 individual components — have already been delivered. Equipment and motor repairs are being carried out on site, reducing the need to dismantle and reinstall heavy machinery.
Don't miss out- Buyers are looking for your products on our B2B platform
Crucially, the sections of the plant used for melting aluminium into slabs and for the final finishing of sheet metal were not affected by the blaze, allowing partial operations to continue.
Bridging the supply gap
To ease shortages, Atlanta-based Novelis, a subsidiary of India’s Hindalco Industries, has begun shipping aluminium from its Swiss plant to US customers. These shipments, however, remain subject to the country’s 50 per cent import tariff, adding further cost pressures to automakers already struggling with tight margins.
Novelis emphasises capacity expansions to ease supply pressures
Two new aluminium rolling facilities, one being built by Novelis, are expected to start operations over the next year, adding more than 400,000 tonnes of capacity to the North American market. These sites will also produce beverage-can stock and are set to become the largest aluminium rolling mills constructed in the US since the 1980s.
If the Oswego plant does resume before year-end, it will ease supply pressures ahead of 2026, but at the same time, the Novelis fire incident also identifies the fragility of the automotive aluminium supply chain on a global scale.
Must read: Key industry individuals share their thoughts on the hottest topics
Responses
