Russian company Rusal and Braidy Industries to build aluminum mill in the United States

MOSCOW (Reuters) – Russian aluminum giant Rusal and US manufacturer of aluminum alloys Braidy Industries plan to create a joint project to produce flat-rolled aluminum products in the United States for the US auto industry, said Rusal.

Rusal, the world's largest producer of aluminum outside of China, is looking to expand into one of the major markets in this sector less than three months after it was removed from the US sanctions list. He has already resumed his deliveries on the American market.

"The plant's production will help rebalance the expected deficit of the auto body plate in the US market," Rusal said in a statement on Monday.

Compulsory documentation for the project – in which Rusal and Braidy Industries will earn 40% and 60% respectively – is expected to be signed in the second quarter, Rusal said. Both companies plan to approach the financial markets to finance the project.

The Ashland, Kentucky plant will have an annual capacity of 500,000 tonnes of hot rolled strip and 300,000 tonnes of cold rolled finished products.

Rusal plans to supply alloys of aluminum plates and primary metal for the new plant from its new Taishet aluminum foundry, currently under construction in Siberia. Rusal had previously planned to launch the Taishet in late 2020.

The delivery of value-added products (VAPs) at the Kentucky plant will also contribute to Rusal's commitment to increase VAP's share of sales, the company added. Its 2018 PVA sales were challenged by short extensions of the US sanctions deadline.

The United States imposed sanctions on the company and its co-owner, Oleg Deripaska, in April 2018. Sanctions against Rusal and En + were lifted in January, with Deripaska reducing its stake in Rusal via its parent company En + after months of talks and several extensions of the contract. deadline for the sanctions to take effect.

The demand for flat-rolled aluminum products in North America is expected to continue to grow at a faster rate than in other parts of the world – particularly in the automotive sector – due to the regulation of the industry. fuel economy that boosts the use of aluminum-based components, Rusal said.

"The joint project with Braidy Industries is an excellent opportunity for Rusal to expand the company's diverse skills in one of the key areas of downstream aluminum products. It will also strengthen the company's presence in the strategic market, "he added.