USFDA11 Feb 2026, 06:21 pm
Hindalco Industries' Subsidiary, Novelis, Expects $1.3-1.6 Billion Free Cash Flow Impact from Oswego Plant Fires
AI Summary
Hindalco Industries Ltd. has updated the Exchange about a fire incident at the Oswego Plant of its subsidiary, Novelis. The fires, which occurred on September 16, 2025, and November 20, 2025, have caused an estimated total free cash flow impact of $1.3-1.6 billion. Novelis estimates that 70-80% of this impact is recoverable through insurance. The plant is expected to restart in late Q2 calendar 2026. The incident has not affected other critical assets at Oswego. The company is working with insurers to confirm applicable coverage and potential insurance recovery.
Key Highlights
- Hindalco Industries' subsidiary, Novelis, experienced two fires at its Oswego plant in the U.S.
- The fires caused an estimated total free cash flow impact of $1.3-1.6 billion, including Adjusted EBITDA impact of ~$150-200 million
- The plant is expected to restart in late Q2 calendar 2026
- Novelis is insured for property damage and business interruption losses related to such events
- The company is working with insurers to confirm applicable coverage and potential insurance recovery