Oswego, NY Third Alarm Burns Wall Street

E

entropychaser

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Jun 27, 2017
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On September 16th a fire struck the Novelis aluminum plant in Oswego, NY. This plant produces 40% of the aluminum sheet metal used in the US automotive industry. It is expected that the plant will be offline for repairs until next year. Replacement of aluminum sheet inventory will require overseas sources which are subject to import tariffs.

This problem impacts Toyota, Hyundai, Volkswagen ,and Stellantis. But the biggest impact is at Ford, specifically F-150; the top-selling vehicle in the US. I would imagine that Wall Street is paying close attention.

In 1980, light vehicles had 100 pounds of aluminum per car. Now it is up to 500 pounds.

 
Thursday morning November 20th Novelis had yet another fire in the same area that burned on September 16th. This also required a multi-alarm response. Ford Motor Company is the plant's biggest customer. Ford has already told investors that they will have a $2 billion decrease in fourth-quarter earnings and had previously planned a 50,000 unit increase in 2026 F-Series production. And now this. Sounds like they could use a fire protection engineer.
 
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