Hindalco Industries shares are in focus today after another fire broke out at Novelis’ aluminum plant in Oswego, New York on Thursday. This incident comes barely two months after a major blaze disrupted a large part of the plant’s production, affecting supplies to key automaker clients, especially Ford.
Ford had already lowered its profit forecast in October, warning that the original fire could result in a gross impact of up to $2 billion. The company noted back then that around half of that hit might be recovered next year by ramping up production at select truck facilities. Ford relies heavily on Novelis because the F-150 series uses a predominantly aluminum body, making consistent supply crucial for its best-selling pickup line.
The September fire forced an indefinite production pause for the F-150 Lightning electric pickup in Michigan, and it also caused interruptions across Ford’s gasoline-powered models. Although Novelis serves multiple automakers, Ford remains one of its most important customers, which makes these repeated incidents a serious concern for the broader supply chain.
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