Fire at Novelis Plant: A $650 Million Impact
Novelis anticipates a negative financial impact of USD 550-650 million in the current fiscal due to a fire at its New York plant. The incident is expected to affect earnings and operations significantly, with restoration efforts ongoing to resume production by December 2025.
- Country:
- India
Novelis, a subsidiary of Hindalco Industries and part of the Aditya Birla Group, reported on Wednesday that a fire at its New York facility will negatively impact its free cash flow by USD 550-650 million this year.
The fire, which occurred in September, is expected to impact earnings before interest, tax, depreciation, and amortization (EBITDA) by USD 100-150 million, according to a regulatory filing. Extensive restoration efforts are underway, with the Hot Mill projected to restart by the end of December 2025.
Hindalco Industries confirmed in a BSE filing that they are investigating the fire's cause while the plant is covered by insurance for property damage and interruption losses. Novelis is renowned for its aluminum products and recycling initiatives.
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