Hindalco Faces $1.3–1.6 Billion Free Cash Flow Impact After Oswego Plant Fire

Hindalco Industries Ltd., India’s leading aluminium producer, has issued an update on the fire incident at the Oswego plant of its US subsidiary, Novelis Inc. The company has projected a total free cash flow impact ranging between $1.3–1.6 billion due to the disruption.

Despite the setback, Hindalco has outlined a clear recovery timeline, with mill operations expected to restart by late Q2 of calendar year 2026. The announcement highlights both the scale of financial impact and the company’s commitment to restoring operations swiftly.

Key Highlights

• Financial Impact: Estimated free cash flow hit of $1.3–1.6 billion.
• Operational Timeline: Mill restart expected by late Q2 2026.
• Incident Context: Fire occurred at Novelis Inc.’s Oswego plant in the US.
• Strategic Outlook: Hindalco is focused on minimizing disruption and ensuring operational recovery.
• Industry Implications: The event underscores risks in global aluminium supply chains and the importance of contingency planning.

The update reflects Hindalco’s transparency in communicating financial and operational challenges while reinforcing its resilience in navigating unforeseen disruptions.

Sources: Business Standard, Reuters, Economic Times.