Fire at aluminum plant in NY now having a ripple effect on the auto industry

Watch Fire at aluminum plant in NY now having a ripple effect on the auto industry - Straight Arrow News on Dailymotion

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00:00It's been just over 24 hours now since a fire broke out in a hot mill at the Novellis

00:05Aluminum plant in Scriba. The company tonight says production is halted.

00:12Novellis supplies at least 350,000 metric tons of sheet aluminum for auto production each year.

00:19The hot mill where sheet aluminum is produced for vehicles is now a total loss and the plant

00:24itself will be offline until early 2026. Ford is the plant's largest customer with its top selling

00:31F-150 a main user of aluminum components. Other automakers including Toyota, Hyundai, Volkswagen

00:38and Stellantis also buy aluminum from Novellis. Now those automakers are scrambling to find another

00:45supplier before their operations are impacted. The supply chain disruption comes at a time when the

00:50auto industry is facing other economic headwinds including a worldwide shortage of semiconductors

00:56and a reliance on China for rare earth magnets. Novellis says it is trying to minimize the impact

01:02of the fire at its upstate New York plant by looking to its other aluminum producing plants

01:07in Europe, Brazil and South Korea. However tariffs could complicate that process as President Trump

01:14has imposed a 50 percent tariff on all aluminum imports. For more unbiased updates download the

01:20straight arrow news app or go to san.com.