Braidy, Rusal Enter Supply Agreement
By Metal Center News Staff
on Apr 16, 2019
Russia’s Rusal has signed a letter of intent to invest up to $200 million at Braidy Industries’ new aluminum rolling facility in Kentucky. The deal calls for a 10-year supply agreement from Rusal to the new facility.
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 tons over 10 years. Braidy Atlas mill’s primary aluminum purchase has a market value of approximately $500 million per year.
“In 2021, Braidy Atlas will make the largest order for primary aluminum rolling slab worldwide. 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,” said Braidy Industries Chairman and CEO Craig Bouchard.
Rusal is the world’s largest producer of aluminum outside of China and historically has been the United States’ second-largest non-domestic supplier of prime aluminum. The LOI becomes binding subject to the final approval by the respective boards of both companies.