Fire disrupts aluminum supply for Ford, other automakers
Published in Business News
Ford Motor Co. said it's working to minimize manufacturing disruptions after a fire took out a New York plant that supplies roughly 40% of the aluminum sheet used in the auto industry.
Aluminum makes up the bodies of the Automaker's F-Series trucks, the country's best-selling vehicles that drive the company's earnings. A late-night fire on Sept. 16 at Atlanta-based Novelis Inc.'s Oswego, New York, plant damaged a building with the company's hot mill that supplies the aluminum sheets for automakers, rendering it unusable. A major part of the plant will be offline until early next year.
"Novelis is one of several aluminum suppliers to Ford," spokesperson Ian Thibodeau said in a statement. "Since the fire nearly three weeks ago, 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."
Ford declined to provide further details on the fire's impact, including whether vehicle production has been affected. Dearborn Truck Assembly, one of Ford's plants that produces F-150s, was running Tuesday, said Tony Richard, first vice president of United Auto Workers Local 600 that represents employees at the plant. The Wall Street Journal first reported on the fire's automotive sector disruptions.
About a dozen automakers use aluminum from Novelis, including Ford, Chrysler-maker Stellantis NV, Toyota Motor Corp., Hyundai Motor Co. and Volkswagen AG, according to a filing with the U.S. Securities & Exchange Commission. Stellantis spokesperson Jodi Tinson said the company is monitoring the situation at Novelis.
"The Company is taking the necessary actions," she said in a statement, "to mitigate any potential impact on our ability to deliver vehicles to our customers."
Novelis is a subsidiary of India’s Hindalco Industries Ltd. The aluminum manufacturer and recycler has rolling plants in Europe, Brazil and South Korea. But imported aluminum into the United States is subject to a 50% tariff. A new plant in Alabama is expected to open next year.
In a statement, Novelis said it's taking steps to minimize the impact of the fire on customers, has activated its global manufacturing network and has partnered with industry peers to source material in efforts to mitigate the gap in supply.
The fire is the latest supply-chain crisis for the auto sector. This year, tariffs imposed by the Trump administration have roiled supply lines of metals, rare earths and other parts. The COVID-19 pandemic in 2020 disrupted production and left a global semiconductor shortage in its wake.
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