Write a commentLast Fall, a number of devastating fires ravaged Novelis’s Scriba plant.
Each time, local heroes—in one instance over 20 fire departments funded by the hardworking taxpayers of Oswego County —charged into the infernos, pumping millions of gallons of water and risking their lives to contain the blaze. After the first fire, the financial fallout rippled across America: Automakers ground to a halt, Ford alone absorbed a staggering billion dollar blow, and the nation glimpsed the quiet powerhouse in Oswego County that supplies nearly 40% of the aluminum for U.S. vehicles.
Novelis is a cornerstone employer in Oswego county. Its presence in the county has been subsidized for decades through a Payment in Lieu of Taxes “PILOT” agreement. The Oswego County Industrial Development Agency (IDA) oversees PILOT agreements, for the primary purpose of attracting businesses to locate in the county. PILOT agreements are intended to be “win-win”: businesses get a tax break and the county benefits from employment and related economic growth.
On January 7, 2026, the IDA approved up to $15 million in new sales and use tax exemptions for Novelis, supposedly to help cover the cost of rebuilding the plant. Assuming a population of 130,000 in Oswego County, a $15 million subsidy equals $115 per person.
PILOT agreements are intended to attract economic development. Novelis is already in Oswego County. Novelis has openly admitted that rebuilding Scriba is essential to maintain its grip on the U.S. automotive market until its shiny new Alabama facility ramps up in 2027. With supply chains locked in and comprehensive insurance covering catastrophic losses and business interruptions, this rebuild isn’t optional, it’s inevitable. And, we’ve been told that insurance will cover most of Novelis’ cost of rebuilding – anything not covered is a result of Novelis’ management decision to assume a certain level of risk.
So why did the IDA grant this $15 million subsidy on January 7 with virtually no public input? Why did the IDA go into executive session without a robust public debate on whether this handout was truly necessary or what the community gets in return?
Assuming the IDA followed the letter of the law - legally “did it right” – was giving Novelis up to $15 million in public subsidy the “right thing to do”? The “right thing” must include accountability, transparency, and real value for taxpayers.
New York’s economic development laws are crystal clear—financial aid should only be granted when it induces a decision that wouldn’t happen otherwise. So, if the project was happening anyway, what exactly is being induced? Did the IDA get a commitment from Novelis not to move production to Alabama? Presumably new technology will be more efficient and cost-effective. Demand for aluminum could fall for many reasons, e.g., along with demand for electric vehicles. If I’m Novelis and I have to cut production in 2028, I know where I’d look, and it would not be my new plant in Alabama.
Last May, Novelis reported $683 million in net income. It claims to pay about $180 million in payroll for the Scriba plant, which is a lot, for those who work there. But Oswego isn’t a booming metropolis—nearly one in six residents live in poverty, and local schools grapple with chronic budget shortfalls. Sales tax revenue isn’t some distant abstraction; it’s a lifeblood funding the county’s fire trucks, ambulances, and roads—the very infrastructure that stepped up when Novelis needed it most.
Bottom Line: Based on a decision by an unelected board in “executive session” Novelis is getting a $15 million subsidy and each Oswegonian is essentially being asked to come up with $115. At a minimum, they need to know what they are getting in return and why they weren’t asked their opinion first.
Supporting Novelis and supporting Oswego are not mutually exclusive. The rebuild is going to happen. The only real question is whether Oswego will continue to subsidize global corporations in executive session – under the proverbial table — or begin negotiating transparently like the community it actually is: a strategic manufacturing hub with leverage.
By Peter Esposito
Retired energy sector executive, former Senior Vice-President of Government Affairs for a national energy company and concerned citizen with longstanding family ties to Oswego. Married for 20 years to Kathleen Sullivan Esposito, the daughter of the late Charlott
