First fire breakout and financial setback, but even after the second blaze at Novelis’ Oswego plant, Ford is not sweating the heat, but instead is doubling its 2025 profit forecast. On Friday, November 21, the motor company released a statement clarifying that the second fire breakout at the plant will not create any impact on its profit margins.
The second fire breakout at Novelis’ plant, which happened last week, was rapidly contained, as shared by both the firm in a joint statement, as well as confirming that the heat-treatment and cold mill operations are up and running normally.
There is no significant disruption in the aluminium shipment to Ford from this plant. This is crucial for the motor company since it is highly dependent on the Oswego plant for aluminium sheet used in its F-Series trucks, which is deemed to be the firm’s best-selling and profitable vehicle line.
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Nearly 40 per cent of the aluminium sheet produced in Novelis’ plant is supplied to the US automakers, where Ford is considered to be the largest consumer of the plant. On September 16, the first fire at the plant broke out, which disrupted the motor company’s production output, resulting in a USD 2 billion loss from the projected profits.
Now, after the second fire breakout, the firm has urged that its projected earnings will be between USD 6 billion and USD 6.5 billion before interest and taxes for 2025. The projected outlook comes in line with its plan to escalate the gasoline-powered F-Series pickup output to 50 thousand units in 2026. This move underscores the lag in production as well as meeting the rising consumer demands while mitigating the supply chain challenges.
After the second fire outbreak, Novelis has announced its intention to develop a new aluminium plant in Alabama, whose operations are expected to begin in the second half of 2026. With this new facility, the firm will be able to reinforce the US aluminium supply chain while eliminating future disruption risks. This plant will boost the domestic market where the demand for aluminium in the automobile application is rising rapidly, especially for the lightweight feature and in EVs.
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