Rusal to invest in Braidy's aluminium rolling mill at Kentucky; earn 40% share in the project

RUSAL has announced through a press release that it has collaborated with Braidy Industries Inc. to construct an aluminium rolling mill in Ashland, Kentucky, USA in order to produce flat rolled aluminium products for the US automotive industry.

Braidy announced its plan to build the aluminium rolling mill in Kentucky in 2017 and broke ground in June 2018.  Braidy promised to create more than 500 high-paying jobs in an area which is economically lagging behind. The mill is expected to produce 500 thousand tons of hot rolled and 300 thousand tons of fully finished cold rolled products per year. The mill’s output is expected to balance the anticipated deficit of the auto body sheet in the US market.

RUSAL and Braidy Industries have agreed upon a Letter of Intent which details the commercial conditions for the joint venture.  The binding documentation for the Project is expected to be signed during Q2 2019. Both RUSAL and Braidy Industries would approach financial markets for fund after signing the Letter of Intent.

RUSAL will supply aluminium in slab alloys and primary form for the rolling mill from its under-construction Taishet aluminium smelter in Siberia. The contract with Braidy will be a part of Rusal’s commitment to increase the share of its value added products (VAP) offerings in total production and sales. RUSAL will earn a 40% share in the project in exchange of its investment.

Aluminium flat rolled product demand in North America has registered solid growth over last five years and is expected to grow further driven by the automotive applications. The new Corporate Average Fuel Economy regulations (CAFÉ) rules required automakers to design lightweight cars for fuel economy leading to more use of aluminium body components in cars. The location of the rolling mill will be in close proximity to a large number of automotive supply manufacturers for ease of logistics.

Rusal considers the JV with Braidy Industries as an excellent opportunity to expand its diverse expertise in one of the key areas of aluminium downstream products.

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