On the Dash:
- Novelis expects to restart its Oswego hot mill within weeks, ahead of a late June target.
- The shutdown cost Novelis an estimated $925 million in pre-tax losses net of insurance recoveries.
- The restart could ease F-150 inventory constraints that pushed average prices up 2.7%.
Aluminum manufacturer Novelis expects to restart its Oswego, N.Y., hot mill within weeks, ahead of a previous target slated for the end of June. The restart brings relief to automakers and dealers who have weathered months of aluminum supply disruptions that cut F-150 inventory nearly 24% and cost Ford an estimated $2 billion.
According to Novelis’ CEO, Steve Fisher, the mechanical rebuild is complete, and the plant is now in the final stages of commissioning.
“From an operational standpoint, we have completed all major mechanical assembly work, and are now in the commissioning process, testing the equipment systems and connections,” Fisher said in a statement.
Two fires and industry impacts
Last year, two fires caused the shutdown. The first broke out Sept. 16, 2025, and the second struck Nov. 20, during repair work from the first. Both were contained to the hot mill area. No employees, contractors, or first responders were injured in either event, according to a May 19 earnings release from Novelis.
The Oswego plant is Novelis’ largest North American facility. It produces up to 1.7 billion pounds of aluminum sheet per year and supplies roughly 40% of the sheet aluminum used by U.S. automakers. The extended outage ranks among the most disruptive supply chain events the industry has seen in recent years.
Ford is one of Novelis’ largest customers. The automaker spent an estimated $1.5 billion to $2 billion sourcing alternative aluminum from overseas suppliers to keep F-Series production moving. In May, F-150 inventory fell nearly 24% between October and mid-May, pushing average transaction prices up 2.7% to $62,614. Ford also announced plans to build more than 50,000 additional F-Series units to recover lost volume.
A billion-dollar disaster
The disruption hit Novelis’ North American results hard in the quarter ended March 31. Shipments in the segment fell 19% compared to a year ago. Adjusted EBITDA for North America came in at $74 million, down 51% year over year. The fires resulted in an estimated $925 million in pre-tax losses net of insurance recoveries for the full fiscal year.
Net sales for the quarter totaled $4.8 billion, up 4% from a year ago. Higher aluminum prices drove the gain. The company posted a net loss of $84 million for the period.
Novelis offset some of the North American shortfall by rerouting shipments globally. The company posted higher automotive and beverage packaging shipments across its Europe, Asia, and South America segments during the quarter, driven in part by increased demand from North American customers.
The path forward
“We are energized by the progress we are making to restart Oswego in the coming weeks and the commission of Bay Minette later this year,” Fisher said. “This is all in order to support strong customer demand for sustainable aluminum products.”
Novelis is also commissioning a new $5 billion recycling and rolling plant in Bay Minette, Ala. The company started commissioning the cold mill there in March. The facility is expected to reach full commission in the second half of this calendar year, produce up to 600 kilotons of finished aluminum goods annually, and create up to 1,000 jobs.
CFO Dev Ahuja said the company sees a clear path forward despite the financial pressure.
“With Oswego restarting, Bay Minette nearing completion, and continued strong business momentum, we believe we have a clear line of sight to returning to positive free cash flow by the end of fiscal 2027, setting a firm path towards deleveraging,” Ahuja said in a press release.
