A fire incident occurred at Hindalco subsidiary Novelis’ Oswego plant in New York, prompting a safe evacuation of workers with no injuries reported. While operations were disrupted, the company expects insurance recovery to offset losses. Hindalco shares dipped nearly 3% as investors weighed the financial and operational impact.
Incident details and market reaction
Novelis confirmed that the fire broke out in September, followed by a smaller incident last month. The company evacuated the plant safely, ensuring no casualties. Hindalco disclosed that Novelis could face a cash flow hit of $550–650 million and an EBITDA loss of $100–150 million, though 70–80% of this is expected to be recovered through insurance. The company plans to restart operations at the affected hot mill by December 2025.
Notable updates
* Fire incidents reported at Novelis’ Oswego plant in September and October
* No injuries; plant safely evacuated during both incidents
* Estimated financial impact: $550–650 million cash flow hit, $100–150 million EBITDA loss
* Insurance recovery expected to cover 70–80% of losses
* Hindalco shares fell nearly 3% following the news
* Operations at the hot mill expected to resume by December 2025
While the fire incidents at Novelis’ Oswego plant have temporarily impacted Hindalco’s performance, strong insurance coverage and recovery plans are expected to mitigate long-term risks.
Sources: Business Standard, CNBC-TV18, India Infoline, Economic Times