New York plant fire expected to disrupt aluminum supply for automakers into next year
A Sept. 16 fire at a New York Novelis aluminum plant is likely to temporarily impact automakers, specifically Ford, which the Wall Street Journal reported Tuesday is cutting production of five models due to the supply interruptions.
Novelis aluminum accounts for 36% of the global market supply to the automotive industry, reports trade publication Supply Chain Dive.
Stephanie Brinley, associate director of AutoIntelligence at S&P Global, told the publication that automakers might have to shift current alumium supplies between models, depending on customer demand.
Novelis says the Oswego, New York location is the company’s first U.S. operation and is its largest wholly-owned fabrication facility in North America. It is equipped for aluminum scrap remelting, recycling, ingot casting, hot and cold rolling and finishing, according to the company’s website.
The company announced on Sept. 30 that the fire broke out on Sept. 16 and was localized at the hot mill area but other centers were temporarily impacted due to various reasons, mainly water.
It reported recovery of the hot mill is expected in Q1 2026. The company reported another small fire at the plant on Oct. 10 that occurred during roof repair. The fire was quickly extinguished and work on the roof continued after the fire was out. It said the incident would not affect the recovery timing for the hot mill operations.
A 2024 SEC filing for Novelis mentions North American customers such as Ford, General Motors, and Toyota.
Supply Chain Dive reported that General Motors and Toyota was not reporting to be significant to operations, with Toyota saying it could meet its needs with alternative suppliers.
Stellantis reported it was taking steps to mitigate any possible impact, the publication reported.
Ford’s production pause includes its three-row SUVs, the Expedition and Lincoln Navigator, at its Kentucky Truck Plant, according to the Wall Street Journal. Production was set to pause for a week.
Automotive News reported last week that the fire will affect production of Ford’s F-150 pickup truck and F-150 Lightning electric pickup and will cost the automaker up to $1 billion.
Brinley told Supply Chain Dive that the added cost automakers will likely have from the fire is unlikely to get passed on to consumers because the disruption is temporary.
“At the end of the day, this is kind of a spot supplier issue,” Brinley said in the article. “The industry has seen them before. They’re not easy; they’re always costly, but it’s a spot problem. And by that I mean it comes up, it can be fixed, and it will be resolved.”
Images
Photo courtesy of Novelis.