Novelis said May 19 it will restart its Oswego, N.Y., plant within the next few weeks, ahead of its prior end-of-June estimate, while commissioning continues at its new Bay Minette, Ala., facility after cold mill startup work began in March.
The Bay Minette plant is expected to commission in the second half of 2026, with a capacity of producing 600 kilotons of finished aluminum goods annually.
Aluminum demand and pricing remain elevated. The Producer Price Index for Aluminum rose 37.3% since April 2025, while construction and electrical markets are expected to require millions of additional tons of aluminum by 2030.
Aluminum producer Novelis is moving to restore and expand U.S. aluminum capacity while construction, transportation, packaging, and power infrastructure have broadened consumption.
The company said in a May 19, 2026, statement that it is safely restarting its fire-damaged Oswego, NY, facility within the next few weeks, ahead of its previous estimate of the end of June, while commissioning continues at its new Bay Minette, Alabama, facility after cold mill startup work began in March.
Its new Alabama facility is expected to commission in the second half of 2026. The facility supports growing North American demand for sustainable aluminum used in beverage can sheet and automotive production.
Novelis said the plant will have capacity to produce 600 kilotons of finished aluminum goods annually and process the equivalent of 17 billion used beverage cans each year.
An undated exterior image of the Novelis aluminum manufacturing facility in Bay Minette, Alabama, under construction. The company is expected to commission in the second half of 2026. The facility supports growing North American demand for sustainable aluminum used in beverage can sheet and automotive production. Image: Novelis
Primary aluminum production has trended upward over the past five decades, despite periodic cyclical downturns, as rising global demand from construction, transportation, packaging, and power infrastructure has expanded consumption.
In late March, CNBC reported that two aluminum producers in the Mideast were attacked by Iranian drones that resulted in injuries to personnel and smelter damage. The metal hit new highs as perceived risks to the global supply chain supply grew.
That inflation is being felt here in the US.
Domestic aluminum producers have received more for their metal in the past year. "The Producer Price Index for Aluminum has surged 37.3% since April 2025, according to FRED data," ConstructConnect Associate Economist Devin Bell noted.
Bell added, "In essence, this indicates that wholesale prices received by domestic aluminum producers have risen by more than a third in just the past year."
The economist noted that the upward trend began in mid-2025, "driven by the implementation of targeted tariffs on aluminum. This pressure has been further intensified by shipping disruptions in the Middle East, which have driven up energy costs, and disrupted production at the region's smelters."
A chart shows the Producer Price Index for Alumina and Aluminum products and processing over the last twelve months through April 2026. "The Producer Price Index for Aluminum has surged 37.3% since April 2025, according to FRED data," ConstructConnect Associate Economist Devin Bell noted. Image: ConstructConnect
Another disruption to production took place when a fire broke out at Novelis’ Oswego, New York, plant on Sept. 16, followed by a second major fire on Nov. 20 in an area undergoing repairs from the earlier incident.
All workers were safely evacuated and no employees, contractors, or first responders were injured in either event, with both fires contained to the hot mill area. Novelis is poised to bring that plant back online.
An interior image of the Novelis aluminum manufacturing facility in Bay Minette, Alabama, under construction. The company is expected to commission in the second half of 2026. The facility supports growing North American demand for sustainable aluminum used in beverage can sheet and automotive production. Image: Novelis
Novelis said, "The Oswego plant has made strong progress in advancing recovery efforts, and commissioning activities are ramping up. We expect the hot mill to be back in service in the next few weeks, positioning us to support pent-up demand and normalize shipments over time."
Even as the Oswego plant returns to production, global demand for the metal is not expected to cool. The International Aluminium Institute has said construction will require an additional 4.6 million kilotons of aluminum by 2030, while the electrical sector will need another 5.2 million kilotons as grid expansion, renewable power, and electrification projects advance.
Novelis’ latest results show why new and restarted capacity matters. Its fiscal 2026 shipments fell 5% to 3,557 kilotons, and fourth-quarter shipments dropped 12% to 844 kilotons, largely because of disruption tied to the Oswego fires. Even so, the company said it is entering the new fiscal year focused on serving customers, commissioning Bay Minette, and bringing Oswego back sooner than expected.
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