Russian aluminum producer to invest in Braidy Industries
The world’s largest low-carbon primary aluminum producer, United Co. Rusal, intends to invest $200 million in Braidy Industries to help build a new aluminum rolling mill at EastPark Industrial Center in Ashland, Kentucky, according to Braidy Industries.
If built, the Braidy plant would be the first greenfield aluminum mill to be built in the U.S. in 37 years.
According to a news release, the partnership with Rusal, the world’s largest producer of aluminum outside of China, will help Braidy to become the first U.S. rolled products aluminum sheet producer to use 100 percent low-carbon inputs from inception.
The deal was outlined in a Letter of Intent the companies revealed Sunday.
Braidy plans to be an advanced manufacturer of metals for the global transportation and defense industries when it completes the construction of its Atlas mill operation, likely by the year 2021. Rusal historically has been the number two non-domestic supplier of prime aluminum to the U.S., according to the release.
The letter of intent 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 million metric tons over 10 years, according to Braidy. This partnership will enable Braidy to become the first company to use 100 percent low-carbon inputs on a permanent ongoing basis, according to the release.
“In 2021, Braidy Atlas will make the largest order for primary aluminum rolling slab worldwide,” Braidy Chairman and CEO Craig Bouchard said in the release. “This partnership assures that Braidy’s requirements will be met with the newest high-quality and low-carbon capacity.
“The bottom line is that without Rusal we could not build an environmentally conscious mill of this scale. We enter the market with the perfect customer proposition — low cost, high quality and low carbon is the future of aluminum.”
Together with its planned manufacturing facilities for subsidiaries Veloxint and NanoAl, Braidy Atlas intends to create 1,500 construction jobs, 650 new permanent advanced manufacturing jobs in the Greenup County, Kentucky, area and approximately 3,600 additional jobs in the surrounding communities.