Make Kitco Your Homepage

UPDATE 2-Russia's Rusal lands first U.S. investment since sanctions lifted

Kitco News


* First greenfield aluminium mill in U.S. for 37 years
* Rusal looks to invest $200 million in the mill
* To supply 2.0 mln T of low-carbon aluminium over 10 years (Releads, adds detail throughout) By Polina Devitt MOSCOW, April 15 (Reuters) - Rusal is making its first investment in the United States since Washington lifted sanctions against the Russian aluminium giant, teaming up with U.S. manufacturer Braidy Industries to build a mill in Kentucky. Rusal, the world's largest aluminium 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 aluminium alloys manufacturer Braidy will create a joint project to produce flat-rolled aluminium products for the U.S. automotive industry, the Russian company said on Monday. "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. The Atlas mill will be the first greenfield aluminium mill in the United States for 37 years, Braidy and En+ said. "In 2021, Braidy Atlas will make the largest order for primary aluminium rolling slab worldwide," Braidy Chief Executive Craig Bouchard said. The binding documentation for the mill in Ashland, Kentucky, which will be 40 percent owned by Rusal and 60 percent by Braidy is expected to be signed by July, Rusal said.


It 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 smelter in late 2020. The Russian company 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.


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.
(Reporting by Polina Devitt, Editing by Raissa Kasolowsky, Sherry Jacob-Phillips and Alexander Smith)

Messaging: polina.devitt.reuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.