A fire at an aluminum plant in Oswego, New York last month could disrupt business for Ford (NYSE:F) and other automakers for months, The Wall Street Journal reported.
The fire broke out in the plant on September 16, causing the most damage to the factory’s hot mill. The plant is owned by Novelis, a unit of Hindalco Industries.
Novelis supplies around 40% of the aluminum sheet used by the auto industry in the U.S., according to industry analysts. The plant’s hot mill, where aluminum sheet is made, is expected to be back in operation in early Q1 of calendar year 2026.
Ford (NYSE:F) will likely flag potential implications of the fire when it releases its financial results this month, people familiar with the matter told WSJ. Ford is the biggest user of the Novelis plant, and its F-150 pickup is one of the industry’s biggest users of aluminum.
“Ford has been working closely with Novelis, and a full team is dedicated to addressing the situation and exploring all possible alternatives to minimize any potential disruptions,” the automaker said in a statement.
Novelis also supplies aluminum sheet to Toyota (TM), Hyundai, and Stellantis (STLA).
A Toyota (TM) spokesperson said the company is working with alternate aluminum suppliers. “We’re in pretty good shape, but not completely out of the woods.”
Stellantis (STLA) said it is working to mitigate the potential impact from the fire, while Hyundai said there was no immediate impact to production.
Novelis on Monday said it has turned to its overseas plants and is partnering with industry peers to source material to help offset the gap in supply. To note, U.S. aluminum imports are subject to 50% tariffs.