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.

 

By Joe Williams

Rusal is seeking to pour $200 million in Kentucky-based Opens a New Window. Braidy Industries, the Russian aluminum giant’s first investment Opens a New Window. in the country since resolving Opens a New Window. a sanctions Opens a New Window. dispute Opens a New Window. with the Trump administration.

Under the terms of the 10-year agreement with controlling company En+ Group, Rusal will be Braidy’s sole-source provider of low-carbon aluminum for its new $1.6 billion rolling mill slated to open in 2020 in northeast Kentucky, the firms said on Sunday. The investment will give Rusal a 40 percent share in the facility and En+ Group Executive Chairman Lord Gregory Barker will serve as co-chairman of the new mill alongside Braidy CEO Craig Bouchard.

The aluminum industry is racing to lower the amount of carbon emitted in the production process. Alongside Rusal’s efforts, Pittsburgh-based Alcoa Corp., Apple Inc. and Rio Tinto Group are developing a process that would rid carbon from the smelting process, replacing it with oxygen emissions. For Braidy, Rusal was the only supplier that could provide the necessary 200,000 tons of low-carbon slab a year, according to Bouchard.

 

Polina Devitt

MOSCOW (Reuters) – Rusal is making its first investment in the United States since Washington lifted sanctions against the Russian aluminum giant, teaming up with U.S. manufacturer Braidy Industries to build a mill in Kentucky.

Rusal, the world’s largest aluminum producer outside China, announced the deal in one of the main markets for the sector less then three months after it was removed from a blacklist. It had already resumed supplies to the U.S. market.

The U.S. imposed sanctions on Rusal and its co-owner Oleg Deripaska in April 2018. Sanctions against Rusal and its parent En+, were lifted in January as Deripaska reduced his stake after months of talks and several extensions of the deadline for sanctions to take full effect..

Rusal and aluminum alloys manufacturer Braidy will create a joint project to produce flat-rolled aluminum products for the U.S. automotive industry, the Russian company said on Monday.

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

 

By Joe Deaux

  • U.S. firm Braidy commits to buy all its aluminum from Rusal
  • Braidy, whose CEO backed U.S. metal tariffs, will pay 10% levy

Just months after being freed from U.S. sanctions, Russia’s largest aluminum maker plans to invest in a new aluminum rolling mill in Kentucky.

United Co. Rusal, controlled by billionaire Oleg Deripaska until the U.S. Treasury forced him to reduce his stake earlier this year, intends to invest up to $200 million in the plant being built by closely held Braidy Industries. Rusal will also supply the mill with unfinished aluminum from plants in Siberia.

The Kentucky mill will sell rolled aluminum to the American auto industry, giving Rusal a better foothold as carmakers use more of the lightweight metal to improve fuel efficiency. The investment also demonstrates Rusal’s confidence the sanctions crisis is firmly in the past, but by acquiring a major U.S. asset the company gives the government potential leverage should it fall under scrutiny again.

 

Moira Vetter | Contributor

Manufacturers can’t get enough high-quality, light-weight aluminum these days. Add to that the goal of lowest-carbon environmental impact, and there were no suppliers up to the task until today.

This morning, Braidy Industries announced a $200 Million strategic investment by global aluminum leader Rusal which dramatically changes the pace and scale of what’s to come.

More than a financial transaction, this investment and partnership is a commitment to a shared vision that revolutionary innovation can achieve what some thought impossible—combine the largest supplier of the highest quality prime aluminum with the lowest cost and most environmentally friendly aluminum mill.

Lord Barker, the Chairman of En+ Group, Rusal’s parent company calls this focus on environmental responsibility, value for money, and positive community impact the “trinity of scale.” Barker who sat in the House of Lords of the UK Parliament, and served as the Minister of State for Energy and Climate Change, has long led the charge for economically viable environmental responsibility.

It’s no surprise Braidy Industries caught Barker’s eye…

 

By Bob Tita

Kentucky startup Braidy attracts $200 million investment from Russian company after sanctions are lifted

Russian aluminum giant United Co. Rusal plans to invest $200 million in a Kentucky rolling mill that would be the largest new aluminum plant built in the U.S. in nearly four decades.

The plant, which startup Braidy Industries Inc. plans to open next year in Ashland, Ky., is the largest project being pursued in the domestic aluminum industry under the Trump administration’s 10% duty on imports of the metal, imposed a year ago. It would also draw more imports into the U.S. because the mill would roll aluminum slabs from abroad…

 

by Deborah Balshem

  • Mill capacity sold out for seven years
  • Likely to seek acquisitions once public

Braidy Industries, an Ashland, Kentucky-based manufacturer of ecologically-friendly aluminum alloys, is aiming for a direct listing on the NASDAQ by mid-2019, according to CEO Craig Bouchard.

The company, which is constructing a USD 1.6bn aluminum rolling mill in Ashland, Kentucky that is projected to open in early 2021, plans to seek USD 1.7bn to cover capital costs, first raising USD 500m in a private pre-IPO round, then USD 1.2bn in debt after going public, he said. The private Series C round is underway via a Regulation D private placement that Braidy hopes to complete prior to a public listing, Bouchard said. It will then seek USD 1.2bn in debt via the Department of Energy’s ATVM Loan Program and the German government’s Export Credit Agency (ECA) Program, he added.