Off The Wire
UPDATE 1-Russia's Rusal, Braidy Industries to set up aluminium rolling mill in U.S.
* Atlas is the 1st greenfield aluminium mill in U.S. for 37 years
* Rusal intends to invest $200 million in this mill
* To supply 2.0 mln T of low-carbon aluminium over 10 years
(Adds details from a joint statement by Braidy and En+ in paragraphs 7-10)
MOSCOW, April 15 (Reuters) - Russian aluminium giant Rusal and U.S. manufacturer of aluminium 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 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. "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 percent and a 60 percent stake, respectively - is expected to be signed by July, Rusal said.
Both firms plan to approach financial markets for funding of the project.
The mill in Ashland, Kentucky will have an annual capacity of 500,000 tonnes of hot-rolled band and 300,000 tonnes of finished cold-rolled products.
Rusal plans to supply aluminium slab alloys and primary metal for the new mill from its Taishet aluminium smelter that is currently under construction in Siberia. Rusal previously planned to launch the Taishet in late 2020. The Atlas mill will be the first greenfield aluminium mill in the United States for 37 years, Braidy and En+, Rusal's parent company, said in a separate statement.
Rusal intends to invest $200 million in this mill and supply about 2 million tonnes of low-carbon aluminium over 10 years worth about $500 million per year.
"In 2021, Braidy Atlas will make the largest order for primary aluminium rolling slab worldwide," Braidy Chief Executive Craig Bouchard said.
Rusal produced 3.8 million tonnes of aluminium in 2018. It historically has been the number two non-domestic supplier of prime aluminium in the United States, Braidy said.
The United States imposed sanctions on the company and its co-owner Oleg Deripaska in April of 2018. Sanctions against Rusal and En+ were lifted in January as Deripaska reduced his stake in them after months of talks and several extensions of the deadline for sanctions to take full effect.
(Reporting by Polina Devitt, Editing by Raissa Kasolowsky and Sherry Jacob-Phillips)Messaging: email@example.com))