Russian aluminium giant Rusal and U.S. manufacturer of aluminum 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 aluminum 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% and a 60% stake, respectively — is expected to be signed in the second quarter, 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 tons of hot rolled band and 300,000 tons of finished cold rolled products.