ADI expects auto sales from Mississippi mill to begin before year end

“We recently received qualifications to supply products for automotive applications, with expectations for automotive sales to commence before the end of 2026,” Chairman and CEO Mark Millet said on the company’s second quarter earnings call.

ADI said it achieved finished product qualifications at several automotive manufacturers for 5182 and 5754 products and is conducting trials for 6000 series alloys.

The company also began commissioning the third and final cold mill in July, which will bring the facility to its full 650,000-metric-ton capacity, Millet said.

The facility produces products for the industrial, packaging, and automotive markets.

Meanwhile, ADI narrowed its operating losses associated with the startup. Second-quarter losses totaled $33 million, down from $40 million during the same period last year.

The Fort Wayne, Ind.-based metals producer also said it expects to record a $16 million asset write-down after deciding to relocate a planned recycled aluminum slab casting center from Benson, Ariz., to Columbus, Miss.

Aluminum net sales rose to $497 million, up from $65 million in the year-ago period.

Flat-rolled sheet product shipments increased to 53,000 metric tons in the second quarter from 22,500 metric tons in the first quarter.

Hot band production increased to 84,000 metric tons, about 50% of the flat-rolled mill’s capacity.

The company said it expects volumes and profitability from its aluminum operations to “increase sharply in the second half 2026 and for full year 2027,” as startup costs subside, utilization and yields increase, and scrap content increases.