ZCZC
BCN-15
RUSSIA-ALUMINUM-US
Rusal, Braidy Industries to build US aluminium rolling mill for automotive
industry
MOSCOW, April 15, 2019 (BSS/TASS) – Russia’s aluminum giant Rusal and US
holding company Braidy Industries Inc. plan to fulfill a joint project on
producing flat rolled aluminium products for the US automotive industry in
Ashland, Kentucky, Rusal’s press service said on Monday.
Rusal will have a 40% share in the new project, while Braidy Industries’
share will amount to 60%. Both Rusal and Braidy Industries plan to approach
financial markets for funding after signing the Letter of Intent. The binding
documentation for the project is due to be signed during the second quarter
of 2019 after the final decision about the project’s implementation is made.
The rolling mill’s annual design capacity will be 500,000 tonnes of hot
rolled band and 300,000 tonnes of fully finished cold rolled products. This
will be the widest US-based cold rolling mill with a width of 104 inches
(262.16 cm), the company says.
“The output from the mill will aid towards rebalancing the anticipated
deficit of the auto body sheet in the US market,” according to Rusal.
The Russian company will supply aluminium both in slab alloys and as a
primary metal for the new rolling mill from its new Taishet aluminium smelter
currently under construction in Siberia’s Irkutsk Region. The mill will be in
close proximity to a large number of automotive supply manufacturers and this
will ensure efficient transportation of finished products.
“Delivering value added products (VAP) to the new Kentucky mill is
consistent with Rusal’s commitment to increase the share of its VAP offerings
as part of the Company’s total production and sales,” the company says.
“The joint project with Braidy Industries is an excellent opportunity for
Rusal to expand the company’s diverse expertise in one of the key areas of
aluminium downstream products. It will also reinforce the company’s presence
on the strategic market,” it notes.
According to the company, the demand for flat rolled products in North
America has shown a robust growth over the past five years. The key driver of
this demand growth is the Corporate Average Fuel Economy regulations (CAFE)
that cause an increase and immediate switch from the original equipment
manufacturers (OEMs) to aluminium-based components.
Rusal is the largest aluminum producer outside China and the only primary
aluminum producer in Russia. In April 2018, the company was targeted by US
sanctions, which froze its US assets and barred US citizens from doing any
business with it. Before the sanctions, the company exported more than 80% of
its products. In late January 2019, the sanctions against Rusal were lifted.
US holding company Braidy Industries manufactures aluminum alloys for
automobile and aerospace industries. It unites scientific and technical
companies Veloxint and NanoAl.
BSS/TASS/HR/1440