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Singapore –
The Russian company Rusal, the world's second-largest producer of primary aluminum, and Braidy Industries, a US-based company, have signed a letter of intent that will make Rusal a strategic partner in Ashland, the company's largest mining company. Braidy Atlas aluminum plant, Kentucky, with an investment of 200 million US dollars. two companies said Sunday.
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The $ 200 million intent letter is considered "the fundamental strategic investment that paves the way for a total investment of nearly $ 1.7 billion," said Rusal and Braidy's executives .
Rusal and Braidy have also negotiated an exclusive 10-year supply agreement under which Rusal will supply the aluminum slab and the P1020 to the Kentucky plant, officials told S & P Global. Platts. The estimated value of this contract would be "about $ 500 million a year as of today. [primary aluminum] price, "said Craig Bouchard, CEO of Braidy.
"We are very fortunate to have the best foundry company in the world to join us as a partner and as the exclusive main supplier," added Mr. Bouchard, adding: "No other company would have Could we supply the low carbon slab, aluminum premium contract that we have negotiated. "
Bouchard argues that the partnership is based on three pillars: low cost, high quality and low carbon. The factory will be the inexpensive producer of aluminum sheet; but it also aims to produce a product of the highest quality from Rusal's low carbon primary aluminum. The furnaces of the operation could be powered with 50% pure aluminum and 50% scrap – contrary to the more common practice of 70:30 ratio of scrap premium, according to Bouchard.
Soon his debut: Braidy Atlas Rusal
With full production expected in 2021, the nearly $ 1.7 billion Braidy Atlas plant is the first new-built aluminum rolling mill built in the United States for more than 35 years. years. The production of its hot rolling mill is estimated at 500 000 t / year and its finished sheet at 300 000 t / year.
Bouchard is eager to acknowledge that Braidy Industries "is leading the reconstruction of the Appalachians.It is a very important social responsibility, we take it very seriously and we only want the best partners in the world to help us. ".
Bouchard said that what is now known as the Braidy Atlas Plant will eventually be called Braidy Atlas Rusal. Both boards are expected to review the letter of intent next month, followed by four to eight weeks of contract work. The documentation process will likely be completed early in the summer.
In an information sheet, Braidy Industries says the parent company is looking for a total capital of $ 500 million, more than 560 investors, more than 100 institutional funds and qualified investors, $ 1 billion " "Substantial interest indices" and $ 45 million available cash without debt.
"Today's day marks the first step in a long-term relationship between our groups focused on creating real value in the emerging low-carbon economy," Platts said. Lord Barker, executive chairman of EN +, the parent company of Rusal. "This is a unique opportunity – globally – that both companies are uniquely positioned to create – the lowest cost, the highest quality and the lowest carbon emissions – is l & # 39; future. "
Barker pointed out how Chinese smelters generate 22 tonnes of carbon for every tonne of aluminum produced, while Rusal smelters generate only 3.7 tonnes of carbon for every tonne of aluminum produced.
"We badociate the lowest cost to the lowest carbon, which means that being responsible to the environment is no longer the preserve of those who have it. means, but in reality becomes the right of every consumer, "explained Barker, one of the main strengths of the partnership.
"Happy" to pay the rates: Bouchard
Kentucky 's facilities, located a day' s drive away from 50% of US auto production, will target the automotive, aerospace and industry markets for plate. light exposed aluminum.
The US Treasury recently lifted the sanctions against Rusal, but the fact that the primary producer is a long-term supply partner will still force Braidy to pay the existing 10% tariff on its aluminum imports. . But according to Bouchard, the quality equipment provided by Rusal is worth it.
"Glad to pay the rates, absolutely," said Bouchard.
– Joe Innace, [email protected]
– Published by Norazlina Jumaat, [email protected]
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