The “Corona” disaster: Multiple US aluminium mills remain inactive as epidemic disrupts the market

Multiple US aluminium rolling mills and extrusion plants declared temporary suspensions to their operations this week as the COVID-19 epidemic has continued to disrupt markets and erode demand.

Aleris Aluminium at its Lewisport, Kentucky, rolling mill has suspended its production from 30th March’20 until 13th April’20.

Jason Saragian, Communications Director of Aleris said: "In response to our major automotive customers announcing temporary production shutdowns, coupled with uncertainty in other markets, we are making the difficult decision to temporarily suspend production at our Lewisport site for two weeks, or until we have worked through the full extent of COVID-19's impact on our customers.”

"These are very dedicated and committed employees, and we will remain in close contact with our automotive customers in the coming days so that we can ensure we are back up and running at Lewisport as soon as possible."

Arconic has also confirmed upcoming suspensions of operations at two of its US facilities.

On 3rd March’20, Tracie Gliozzi, Arconic spokesperson said: "Starting next week, two of our plants in the US, the Tennessee Operations and Arconic Massena in New York, will temporarily idle as a result of disruptions related to COVID-19.” 

Arconic's Tennessee rolling mill produces aluminium for the automotive and industrial end markets. The company's Massena extrusion facility serves the industrial, aerospace, defence and automotive industries.

Norsk Hydro has several extrusion facilities in the US, said its extrusion output had been heavily reduced as a result of reduced demand in the current environment.

Again on 3rd March’20, Hilde Aasheim, CEO of Hydro informed the investors: "About 35% of the sites within the extruded solutions business are running at approximately normal levels today, but 40% are running at reduced levels, and it varies between plants. Though 25% of our sites are either closed or running at very low levels. The impact is felt across the whole portfolio and impacting deliveries to almost all sectors, primarily toward the building and construction and automotive sectors."

In contradiction, Alcoa notified it has taken strong measures to protect its global workforce and production from the threat caused by the pandemic.

Alcoa said on 3rd March’20: "Presently, all of Alcoa's bauxite mines, alumina refineries, aluminium smelters, cast houses, and its rolling mill remain operational and with appropriate protocols in place to protect our workforce, suppliers, customers and communities.” 

The idling of the mills that was confirmed this week followed previous operational suspensions announced by Novelis and Constellium in March’20.

Novelis spokesman Matthew Bianco said in March the company's plants in Oswego, New York and Kingston, Ontario, stopped production due to US automaker shutdowns in North America.

Bianco said: "Novelis is experiencing some disruption to our global aluminium production as a result of reduced demand from those customers that have temporarily shut down their own manufacturing operations due to COVID-19.” 

Constellium also reduced or suspended activities at some of its manufacturing sites in response to the pandemic.

Jean-Marc Germain, CEO, Constellium said: "Responding to customer demand and employee safety, we are taking decisive actions. While the situation remains very fluid, I believe we are well-positioned to manage through this uncertain time."