Hindalco shares opened weak on Friday, falling around 2% in early trade, after Novelis reported yet another fire incident at its aluminum plant in Oswego, New York. The fresh incident, which occurred on Thursday, has raised renewed concerns about supply disruptions for key customers. It also comes barely two months after a major blaze halted a significant part of the plant’s operations.
The Oswego facility is critical because it supplies aluminum sheets to several leading automakers, especially Ford. The September fire had already triggered large-scale production interruptions, including an indefinite pause at Ford’s F-150 Lightning electric pickup plant in Michigan. It also disrupted output across the company’s gasoline-powered F-150 models, amplifying pressure on the supply chain.
Ford had trimmed its profit forecast in October, cautioning that the earlier fire could lead to a gross impact of up to $2 billion. At the time, the company indicated that roughly half of that impact might be recovered next year as production gradually scales up at select truck plants. Since the F-150 lineup relies heavily on aluminum due to its predominantly aluminum body, a steady flow of material from Novelis remains essential.
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