How the Novelis plant fire could impact the economy
SCRIBA, N.Y. (WSYR) — The Novelis plant in Scriba, near Oswego, is back up and running after a destructive fire on Sept. 16. But with the hot mill out of commission until the first quarter of 2026, according to the company, there could be a toll on the automotive industry and the Central New York economy.
The hot mill consists of essential equipment for aluminum sheet production.
“You have to remember, 40 percent of the sheet metal, aluminum, is used in the automotive industry as a whole, 40 percent,” Patrick Penfield, a professor of supply chain practice at Syracuse University, said. “It’s really difficult. You can try and find other sources, but it’s going to take time.”
Time that Ford and other automotive companies do not necessarily have; they’re already seeing significant drops in the stock market.
“That is their number one selling vehicle in the United States, so it uses almost all aluminum,” he said. “So, not having that aluminum supplies is really going to impact their ability to sell those trucks, and they make about $17,000 per truck on average profit, you know, from the F-150.”
Oswego Mayor Robert Corradino said the Scriba and Oswego communities are hoping for the best and bracing for the worst when it comes to the local impact.
“We’ll get through this,” Corradino said. “Nobody could foresee a fire, but you know, there’s an old saying, ‘When the going gets tough, the tough get going.’”
Penfield said the shutdown of the hot mill will have a ripple effect in the community, regardless.
“Hopefully, New York State will step in, kind of, help the workers at Novelis,” he said. “But nonetheless, Novelis supports a lot of the smaller companies in that area, so if they’re not producing aluminum, then they’re not buying stuff from all these other suppliers.”
A Novelis spokesperson has confirmed that the company has activated its global network of plants and is partnering with others in the industry to source material to mitigate the gap in supply.
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