The Russian company RUSAL and the American holding Braidy Industries will build a joint venture for the production flat rolled for the US automotive industry in Kentucky.
Rusal’s press service said on Monday.
“RUSAL and the American holding Braidy Industries Inc. declare intention to create the joint project on production of flat rolled for the American automobile industry in Ashland, Kentucky, the USA”, — approved in the message.
The company signed an exclusive agreement of intent. The rest of the project documentation will be signed in the second quarter of 2019 after the final approval of the project.
It is expected that the design capacity of the plant will be 500 thousand tons of hot rolled tape and 300 thousand tons of finished cold rolled products per year.
“In exchange for investments RUSAL will receive a 40% share of the new plant. 60% will belong to Braidy Industries,” the Russian company noted.
Rusal planned the products will help to balance the expected deficit in the production of rolling sheets for the US automotive industry.
The Russian company will be carried out delivery of aluminum from the Taishet aluminum plant in Siberia.
The new Russian-American company will be located near the manufacturers of auto parts, which will reduce the cost of transportation of finished products.
The Russian company stressed that the new project will strengthen its presence in the “strategically important market”.
In late January, the US Treasury Department announced the lifting of sanctions against Russian companies En+, RUSAL and EuroSibEnergo.