By Will Wright

Braidy Industries, which plans to build a $1.7 billion aluminum mill near Ashland, will partner with a Russian company previously blacklisted by the U.S. government for alleged meddling in the latest presidential election.

Rusal, one of the largest aluminum producers in the world, announced in a news release Monday that it will invest in the project, taking a 40 percent ownership share of the mill, and provide aluminum to Braidy Industries.

The two companies have entered into a Letter of Intent, and expect to sign a binding document in the second quarter of 2019, according to the release.

The partnership represents a potential $200 million lead investment by Rusal, said Jaunique Sealey, Braidy’s Executive Vice President of Business Development, during a news conference at the New York Stock Exchange.

“Rusal is the only company worldwide which could supply low carbon aluminum at the scale required by Braidy Industries,” Sealey said.

 

Glenn Puit, Editor

NEW YORK – It was a moment of celebration for Northeast Kentucky and Braidy Industries Monday morning at the New York Stock Exchange as company leaders detailed a new global partnership to develop Braidy’s aluminum mill right here in the Tri-State.

Ashland-based Braidy confirmed late Sunday it is partnering with global economic powerhouse En+ Group, which owns a controlling stake in worldwide aluminum supplier Rusal. The partnership involves a $200 million lead investment in the Braidy Atlas aluminum mill at EastPark Industrial Center by the Russian-based Rusal.

“It is a project of global importance,” said Lord Gregory Barker, En+Group executive chairman, during a Monday press conference at the NYSE.

The proposed partners have a letter of intent in place for the investment from Rusal. The deal still has to be approved by boards of directors from both companies. The deal is a major step forward for Braidy, bringing international financial backing to a $1.7 billion mill projected to create some 600 full-time jobs to the Boyd-Carter-Greenup county area, as well as more than 1,000 construction jobs as the plant is constructed.

 

NEW YORK — Braidy Industries and En+ Group have announced the execution of a letter of intent specifying basic terms for a potential $200 million lead investment for its Braidy Atlas mill by En+ Group subsidiary, Rusal.

Rusal is the world’s largest producer of aluminum outside of China and historically has been the U.S.’ number two non-domestic supplier of prime aluminum. The LOI becomes binding subject to the final approval by the respective boards of both companies. In exchange for its investment, Rusal will obtain a 40 percent share in the project. Rusal will serve as Braidy’s exclusive supplier of low-carbon aluminum, providing close to 2.0 million mtons over 10 years. This will be the world’s largest order for one mill of high-quality, pre-alloyed and low-carbon primary aluminum slabs. Braidy Atlas mill’s primary aluminum purchase has a market value of approximately $500 million per year.

En+ Group Executive Chairman and respected climate action advocate, Lord Barker, will assume the role of co-chairman of the Braidy Atlas mill alongside Braidy Industries Chairman and CEO Craig Bouchard.

This strategic partnership aims to create on an end-to-end basis, the first low-carbon impact industrial aluminum rolling mill operation in the world. Braidy Atlas mill will be the first North American company to contract Rusal’s premier ALLOW-branded (certified low-carbon) aluminum slabs and P1020 as its exclusive primary inputs. No U.S. domestic smelter currently delivers low-carbon primary aluminum slabs. Rusal is the sole primary aluminum producer globally that is capable of meeting Braidy’s quantity requirements and sustainability standards. This partnership will enable Braidy to become the first company to use 100 percent low-carbon inputs on a permanent ongoing basis.

 

Edited by DeAnne Toto

Rusal will obtain a 40 percent stake in the project in exchange.

Ashland, Kentucky-based Braidy Industries Inc. and Russia-based En+ Group PLC have announced the execution of a letter of intent (LOI) specifying basic terms for a potential $200 million lead investment for its Braidy Atlas mill by En+ Group subsidiary, United Company Rusal PLC.

En+ Group is a leading international vertically integrated aluminum and hydropower producer. The company’s power plants have a total installed capacity of 19.5 gigawatts, including 15.1 gigawatts of hydropower assets, and 3.9 million metric tons of annual aluminum production capacity through a controlling stake in UC Rusal PLC, the world’s largest aluminum producer outside of China in 2018, which is the major consumer of En+ Group’s hydroelectricity. Rusal historically has been the U.S.’ No. 2 nondomestic supplier of prime aluminum.

The LOI will become binding after the approval of both companies’ boards. In exchange for its investment, Rusal will obtain a 40 percent share in the project, which plans to construct a greenfield aluminum rolling mill to serve the automotive and aerospace industries. Rusal will serve as Braidy’s exclusive supplier of low-carbon aluminum, providing roughly 2 million metric tons over 10 years, according to a news release issue by Braidy. This will be the world’s largest order for one mill of high-quality, prealloyed and low-carbon primary aluminum slabs. Braidy Atlas mill’s primary aluminum purchase has a market value of approximately $500 million per year, according to the company.

 

by Staff

With the weight of sanctions finally lifted from its shoulders, Russian Federation aluminium giant U.C. Rusal announced earlier today a joint venture with Braidy Industries to construct and operate a flat-rolled aluminium rolling plant in Ashland, Kentucky.

Per Rusal, the mill will have a nameplate capacity of 800 thousand metric tons per annum, with 500 thousand metric tons per annum devoted to hot-rolled band, and the balance to fully-finished cold-rolled aluminium products. The mill will feature state-of-the-art equipment, including the widest cold-rolling mill in the United States at 104”.

The new mill will be fed raw aluminium from Rusal’s own smelters, specifically from operations at an under-construction smelter in Taishet, Siberia. Once constructed, Rusal will retain a 40-percent share, with the remaining ownership vesting in Braidy.

Though the two firms agree on the broad details of the project, a myriad of minute arrangements remain to be settled. As a result, the parties drafted a Letter of Intent on the project that spells out commercial conditions for the joint venture as well as establishing a framework for future negotiations. The document will likely be signed by the conclusion of the current quarter.

 

by Nadine Bloxsome

RUSAL and Braidy Industries will construct a greenfield aluminium rolling mill in Kentucky

RUSAL and Braidy Industries Inc., and NanoAl, a Northwestern University incubated materials research and technology company, have announced an intent to establish a joint project in Ashland, Kentucky, USA to produce flat rolled aluminium products for the US automotive industry.

The design capacity of the rolling mill will amount to 500 thousand tons of hot rolled band and 300 thousand tons of fully finished cold rolled products on an annual basis. It will be the widest US-based cold rolling mill with a width of 104 inches. The output from the mill will aid towards rebalancing the anticipated deficit of the auto body sheet in the US market.

The mill will operate with state-of-the art equipment provided by industry leaders. This will ensure market leadership whilst providing a sustainable competitive advantage in the long term.

RUSAL will supply aluminium (both in slab alloys and as a primary metal) for the new rolling mill from its new Taishet aluminium smelter that is currently under construction in Siberia. 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.

In exchange for its investment RUSAL will earn a 40% share. Braidy Industries will keep the balance 60%. The project debt will be raised from several financial institutions.

 

By BRUCE SCHREINER

FRANKFORT, Ky. (AP) — An aluminum company planning to build a $1.7 billion plant in Appalachia said Monday it’s forging a partnership with a Russian company that until recently faced U.S. sanctions.

Russian aluminum giant Rusal wants to invest $200 million in a Kentucky taxpayer-backed aluminum rolling mill that Braidy Industries intends to build near Ashland, Kentucky. Rusal would supply aluminum for the new mill from a smelter under construction in Siberia.

Rusal said it would assume a 40 percent ownership stake in the mill in return for the investment, the Russian company said in a release.

Braidy would hold the other 60 percent share in the plant, which will produce aluminum sheet primarily for the transportation industry, including the automotive, aerospace and marine sectors.

The project is expected to create 1,500 construction jobs and more than 650 full-time jobs once the plant starts production, which is expected in early 2021. The plant is to be built not far from where Ohio, Kentucky and West Virginia meet on the Ohio River.

Rusal had been among Russian companies hit with U.S. sanctions for connections to Russian oligarch Oleg Deripaska. The U.S. Treasury Department announced in January it was removing Rusal and two other companies from its sanctions list on the grounds that the companies have reduced Deripaska’s direct and indirect shareholding stakes in the three companies.

 

Author: Joe Innace
Editor: Norazlina Jumaat
Commodity: Metals

Singapore — Russia’s Rusal, the world’s second largest producer of primary aluminum, and US-based Braidy Industries have signed a letter of intent, which will make Rusal a strategic partner in Ashland, Kentucky’s Braidy Atlas aluminum mill, with Rusal investing up to $200 million, the two companies said Sunday.

The $200 million letter of intent is viewed as the “strategic, cornerstone investment that paves the way for the nearly $1.7 billion total investment,” Rusal and Braidy executives said.

Rusal and Braidy also have negotiated an exclusive 10-year supply contract under which Rusal will supply aluminum slab and P1020 to the Kentucky mill, officials told S&P Global Platts. That contract’s estimated value would be “approximately $500 million per year at today’s [primary aluminum] prices,” Braidy CEO Craig Bouchard said.

“We are very fortunate to have the best smelting company in the world join us as our partner and as our lead, exclusive supplier,” Bouchard added, continuing, “No other company could have supplied us with the low-carbon slab, prime aluminum contract that we’ve negotiated.”

 

Reuters with CNBC.com

Key Points

  • Rusal, the world’s largest aluminium producer outside China, is seeking expansion in one of the main markets for the sector less then three months after it was removed from a U.S. sanctions list.
  • It has already resumed supplies to the U.S. market.

Russian aluminium giant Rusal and U.S. manufacturer of aluminum alloys Braidy Industries plan to create a joint project to produce flat rolled aluminium products in the United States for the U.S. automotive industry, Rusal said.

Rusal, the world’s largest aluminum producer outside China, is seeking expansion in one of the main markets for the sector less then three months after it was removed from a U.S. sanctions list. It has already resumed supplies to the U.S. market.

“The output from the mill will aid towards rebalancing the anticipated deficit of the auto body sheet in the U.S. market,” Rusal said in a statement on Monday.

The binding documentation for the project — in which Rusal and Braidy Industries will get a 40% and a 60% stake, respectively — is expected to be signed in the second quarter, Rusal said. Both firms plan to approach financial markets for funding of the project.

 

By MARK MAYNARD, Kentucky Today

ASHLAND, Ky. (KT) – Braidy Industries, Inc., may be having its greatest day Monday.

A letter of intent outlining basic terms for a $200 million lead investment for its Braidy Atlas mill is officially in the works with United Co. Rusal, a Russian aluminum giant and one of the world’s largest producers of aluminum outside of China.

The letter of intent becomes binding upon approval from the boards of both companies.

In exchange for its investment, Rusal will obtain a 40% share in the project and serve as Braidy’s exclusive supplier of low-carbon aluminum, providing close to 2 million metric tons over 10 years. It will be the world’s largest order of high-quality, pre-alloyed and low-carbon primary aluminum slabs for one mill.

Braidy Atlas mill’s primary aluminum purchase has a market value of approximately $500 million per year.

Rusal is a subsidiary of London Stock Exchange-listed En+ Group, whose executive chairman is Lord Barker. He will assume the role of co-chairman of the Braidy Atlas mill alongside Braidy Industries chairman and CEO Craig Bouchard.

This strategic partnership aims to create on an end-to-end basis the first low-carbon impact industrial aluminum rolling mill operation in the world. Braidy Atlas mill will be the first North American company to contract Rusal’s premier ALLOW-branded (certified low-carbon) aluminum slabs.