According to reports from Reuters and the Wall Street Journal, Novelis has successfully restarted production at its Oswego, New York facility after months of shutdowns caused by two fires, with the restart occurring on June 10th. The aluminum supplier announced the resumption, marking a significant operational milestone for the company. The facility plays a crucial role in Ford's manufacturing supply chain, particularly for the F-150 pickup truck line, which is Ford's best-selling vehicle and relies heavily on aluminum bodies for its construction. As reported by Reuters, the Oswego facility is a key swing factor for automakers that need its aluminum, with disruptions showing up quickly in output and costs. Novelis CEO Steve Fisher emphasized that restarting the Oswego hot mill is an important step forward for operations and customers, as reported by Reuters.
As reported by Reuters and the Wall Street Journal, while Novelis supplies multiple automakers including Stellantis and General Motors, Ford represents a major customer due to its flagship F-series trucks that primarily use aluminum bodies. The supply disruptions had created significant bottlenecks in Ford's production line, leading to broader industry challenges. The aluminum shortage reduced Ford's inventories of trucks at its dealers going into summer, typically a busy time for new auto sales. The New York facility's restart is particularly critical given Ford's reliance on aluminum-intensive vehicle construction for its top-selling models, with the shortages being painful enough that Ford cut its 2025 profit forecast and warned it could take a charge of up to $2 billion. Novelis is now working closely with customers to ramp up supply, as reported by Reuters.
According to Reuters, the fires had spurred supply bottlenecks that forced Ford to cut its 2025 profit forecast and flag a charge of up to $2 billion. The disruptions also impacted Novelis's parent company, as India's Hindalco Industries reported in May that the plant disruptions cost it roughly $437 million in the fourth-quarter. Novelis had previously relied on plants in South Korea and Europe to compensate for the New York facility downtime, as noted by Reuters.
According to Investing.com, Ford stock rose 1% Wednesday following the Wall Street Journal report of the plant restart. The facility produces thin aluminum sheets that are stamped into fenders, hoods and other exterior vehicle parts, making it the largest domestic supplier of aluminum sheet for the U.S. automotive industry, serving about a dozen companies including Ford, General Motors, and Stellantis. The plant restart is expected to alleviate supply constraints that have affected production of Ford's key truck models over the past several months. As reported by Reuters, Novelis CEO Steve Fisher emphasized that the hot mill restart is only the first step, stating that the company still has to ramp back to steady, contract-grade volumes while coordinating allocations with customers.
