Hindalco Industries, an Aditya Birla Group company, expects a $550-650 million (about ₹5,700 crore) cash flow hit due to the fire at its US subsidiary, Novelis, on September 16.

The company said that the losses include an adjusted EBITDA impact of about $100-150 million. Novelis may also incur an additional $21 million in costs to restore operations at the plant. This is in addition to a significant impact on the revenue.

Hindalco said that the insurance companies will cover 70 -80 per cent of the losses or damage caused by the fire at the Oswego, New York, facility.

Last quarter, a fire broke out at Novelis’ plant. Although there were no casualties, the accident caused major production disruptions at the plant, especially in the hot mill area.

Recovery plans

Hindalco, in a statement,

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