Novelis Reveals Plan to Restart Hot Mill Damaged in Fire

Core Insights - Novelis plans to restart a hot mill at its Oswego, New York plant, which was damaged by a fire, with operations expected to resume in December [1] - The fire, which occurred on September 16, primarily affected the hot mill, leading to an estimated total impact of approximately $21 million, including $11 million in non-cash charges [2] - Restoration efforts have progressed, with the cold mill, finishing, and recycling/ingot casting areas already back online [3] Damage and Recovery - The fire caused damage to other production centers, but no injuries were reported [2] - As of November 5, crews are working around the clock to repair structural damage, including installing new roof trusses and procuring nearly 7,000 parts for repairs [4] - Novelis has utilized supply from its global plants and industry peers to mitigate customer disruption, despite facing a 50% U.S. tariff on imported aluminum [6] Customer Impact - The incident is expected to negatively affect Novelis' customers, particularly in the automotive sector, with analysts estimating a potential $1 billion impact on Ford's earnings due to disruptions in F-150 truck production [5] - Novelis has not disclosed details regarding the hot mill's operational capacity or the specific sources used to supply customers [7]