Rusal, Braidy Industries to build aluminium rolling mill in Kentucky, US

WCN Editorial Team 15 Apr 2019 NORTH AMERICA BUILDINGS

Large scale aluminium producer Rusal has collaborated with Braidy Industries to establish a joint project to produce flat rolled aluminium products for automotive industry in Ashland, Kentucky, US.

Braidy Industries is a US-based holding company that owns Veloxint, an MIT-incubated light-weighting solutions company, and NanoAl, a Northwestern University incubated materials research and technology company.

Through the investment in the mill, Rusal would earn a 40% share and Braidy would keep the remaining 60% interest. 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, both have signed an exclusive letter of intent, which details the commercial conditions for the joint venture along with providing details for any future negotiations going forward.

The company said that the binding documentation for the project is expected to be signed during the second quarter of 2019, following the final decision on the implementation of the project is made.

The design capacity of the rolling mill is expected to be 500 thousand tonnes of hot rolled band and 300 thousand tonnes of fully finished cold rolled products on an annual basis.

Rusal claims that the new mill would be the widest cold rolling mill in the US, with a width of 104 inches and the output from mill is expected to address the deficit auto body sheet in the US market.

The mill is expected to be operated with advanced equipment provided by industry leaders to provide a sustainable competitive advantage in the long term and strengthen its position in the market.

The company said that it will supply aluminium in both forms as slab alloys and primary metal, for the new rolling mill in Kentucky from its new Taishet aluminium smelter, which is currently under construction in Siberia.

“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 said in a statement.

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Image: Rusal will supply aluminium in both slab alloys form and as primary metal. Photo: Courtesy of homw from Pixabay.

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