New Aluminium mill for Kentucky
(Posted on 18/04/19)
RUSAL, one of the leading global aluminium producers, and Braidy Industries Inc., a US base holding company which owns both Veloxint, an MIT-incubated lightweighting solutions company, 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. Both RUSAL and Braidy Industries intend to approach financial markets for funding after signing the Letter of Intent.
RUSAL and Braidy Industries have entered into an exclusive Letter of Intent which details the commercial conditions for the joint venture alongside providing details for any future negotiations going forward. The binding documentation for the Project is expected to be signed during the second quarter of 2019 after the final decision about the implementation of the Project is made.
The demand for flat rolled products in North America has demonstrated the robust growth over the past 5 years and this will continue above average rates all over the world, especially in the automotive sector. 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. The chosen location of the mill that will be in close proximity to a large number of automotive supply manufacturers will ensure efficient transportation of the finished products.
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.
RUSAL is the leader of the global aluminium industry. In 2018, the Company accounted for about 5.8% of global production of aluminium and 6.2% of alumina production. The Company employs about 62,000 people RUSAL's offices are operating in 20 countries all over the world and across 5 continents.
Latest News
Cargill moves to take full control of SJC Bionergia
(Posted on 07/02/25)Cargill continues to advance its growth strategy in the Brazilian market and reinforces its investment... Read more
Anglo American completes sale of minority interest in Jellinbah for A$1.6 billion
(Posted on 31/01/25)Anglo American plc has announced the completion of the sale of its 33.3% minority interest in Jellinbah... Read more
Rivera now MD of Cremer Erzkontor Mexico
(Posted on 30/01/25)Rafael Rivera has been appointed the new Country Manager Mexico of the end-to-end raw materials supplier... Read more
Rio Tinto provides Iron Ore update following Tropical Cyclone Sean
(Posted on 24/01/25)Tropical Cyclone Sean delivered record rain along parts of the Pilbara coastline of Western Australia... Read more
Rio Tinto shows greater consistency across key operations
(Posted on 19/01/25)Rio Tinto has released fourth quarter production results. Chief Executive Jakob Stausholm said: &ldquo... Read more
Trafigura publishes 2024 Sustainability Report
(Posted on 19/01/25)Trafigura Group Pte Ltd. has published its 2024 Sustainability Report, highlighting the Group’... Read more
NGFA comments on US East and Gulf Coast port labour deal
(Posted on 10/01/25)The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have... Read more
Vitol completes acquisition of Noble Resources
(Posted on 07/01/25)Further to the announcement of 2nd August 2024, Vitol B.V. has now completed the acquisition of... Read more
Rio Tinto progresses development of Quebec gallium extraction process
(Posted on 17/12/24)As part of a research and development programme, Rio Tinto is assessing the potential for extracting... Read more
Trafigura publishes 2024 Annual Results
(Posted on 17/12/24)Trafigura Group Pte Ltd, a market leader in the global commodities industry, has released results for... Read more
