NEW YORK, April 14, 2019 /PRNewswire/ -- Today, Braidy Industries, Inc. ("Braidy") and London Stock Exchange listed En+ Group plc, announced the execution of a Letter of Intent ("LOI") specifying basic terms for a potential $200 million lead investment for its Braidy Atlas mill by En+ Group subsidiary, United Company RUSAL plc ("Rusal").
Rusal is the world's largest producer of aluminum outside of China and historically, has been the U.S.' number two non-domestic supplier of prime aluminum. The LOI becomes binding subject to the final approval by the respective boards of both companies. In exchange for its investment, Rusal will obtain a 40% share in the project. Rusal will serve as Braidy's exclusive supplier of low-carbon aluminum, providing close to 2.0 million mtons over 10 years. This will be the world's largest order for one mill of high-quality, pre-alloyed and low-carbon primary aluminum slabs. Braidy Atlas mill's primary aluminum purchase has a market value of approximately $500 million per year.
En+ Group Executive Chairman and respected climate action advocate, Lord Barker, will assume the role of co-chairman of the Braidy Atlas mill alongside Braidy Industries Chairman and CEO Craig Bouchard.
This strategic partnership aims to create on an end-to-end basis, the first low-carbon impact industrial aluminum rolling mill operation in the world. Braidy Atlas mill will be the first North American company to contract Rusal's premier ALLOW-branded (certified low-carbon) aluminum slabs and P1020 as its exclusive primary inputs. No U.S. domestic smelter currently delivers low-carbon primary aluminum slabs. Rusal is the sole primary aluminum producer globally that is capable of meeting Braidy's quantity requirements and sustainability standards. This partnership will enable Braidy to become the first company to use 100% low-carbon inputs on a permanent ongoing basis.
Chairman and CEO Craig Bouchard said, "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."
Jorge Vazquez, Founder and Managing Director of HARBOR Aluminum Intelligence, one of the world's leading aluminum industry consultancies, said, "The 10-year supply contract between Braidy Atlas and Rusal represents the world's largest low-carbon primary aluminum slab order for a single mill. The contract will enable Braidy Atlas to have a competitive advantage in terms of cost, quality and sustainability, while providing a market value of over $5 billion to Rusal."
Lord Barker, Executive Chairman of En+ Group, said, "This announcement is an important first step in forging the long-term partnership that will be vital to building this globally unique plant. Of all prime producers around the world only Rusal, the largest outside China, has the capacity to supply such a large new plant with the high-quality, low-carbon aluminum it needs."
Kevin Parker, Independent Non-Executive Director of UC RUSAL and sustainability expert said, "This deal showcases Rusal's commitment to sustainability and environmental protection. The synergies created by Rusal's low-carbon aluminum and Braidy Industries' downstream assets will be a game-changer for the aluminum industry in the United States."
Significant Economic Impact, 650 Permanent Jobs Created in the Heart of Coal Country
Enabled by the efficiencies of advanced manufacturing and coupled with manufacturing facilities for Veloxint and NanoAl, Braidy Atlas will create 1,500 construction jobs, 650 new permanent advanced manufacturing jobs in Appalachia and approximately 3,600 additional jobs in the surrounding communities. According to a recently completed economic impact study, Braidy Atlas will contribute $2.8 billion to the Commonwealth of Kentucky and $1.54 billion to Eastern Kentucky by the year 2021. In addition, over 18,025 new jobs will be created as a result, amounting to the generation of 31,000 incremental job years for the Commonwealth.
About the Braidy Atlas Mill:
- Braidy Atlas is the first new U.S. greenfield rolling plant in 37 years.
- This new plant is totally dependent on long-term supplies of high-quality, low-carbon aluminum.
- No U.S. producer of prime aluminum is able to supply the huge quantities required.
- Outside the U.S., only Rusal can supply low-carbon, high-quality aluminum at this scale.
- Braidy and Rusal share the same vision of low-carbon growth and the opportunities it creates.
About Braidy Industries, Inc.:
- Braidy Industries is a multi-material lightweighting solutions company and sole owner of three inter-operating business units: Veloxint, Braidy Labs and Braidy Atlas.
- Braidy Atlas is the world's lowest-cost aluminum rolling mill under construction in Ashland, Kentucky, optimized to produce interior structural metal and exposed sheet parts for the transportation industry.
- Veloxint, acquired by Braidy in 2018, manufactures ultra-high strength components using nano-enabled powder metallurgy approaches developed at MIT. Veloxint parts are designed for dramatic lightweighting and performance improvements in transportation, industrial and consumer products applications.
- NanoAl, acquired by Braidy later in 2018, commercializes nanocrystalline strengthening technology developed at Northwestern University to make aluminum stronger and lighter. The NanoAl technologies are at the heart of Braidy Labs, charged with keeping Braidy on the leading edge of advanced manufacturing technology by introducing advanced strength properties into traditional rolled products.
- Braidy Industries is led by an accomplished Board of Directors, including world-renowned leaders in economics, industry, academia, materials science and rapid-growth technology commercialization.
For more information, visit www.braidy.com.
About En+ Group plc:
- En+ Group plc is a leading international vertically-integrated aluminum and hydropower producer.
- En+ Group was listed on the London Stock Exchange in 2017, and owns a controlling share of United Company RUSAL plc.
- The Group employs 100,000 people globally operating in 14 countries across five continents.
- The Group is focused on finding new technological solutions to further reduce the carbon footprint of its activities.
- Our business advantage stems from the full integration of world- class hydropower assets that reliably and sustainably supply the energy required for the production of aluminum.
For more information, visit www.enplusgroup.com.
About United Company RUSAL plc:
- UC RUSAL plc is the largest low-carbon aluminum producer in world and a subsidiary of En+ Group plc.
- In 2018, the total production of aluminum was 3.8 mmt, 5.8% share of global output.
- Rusal is a completely vertically-integrated aluminum company with assets right through the production process – from bauxite and nepheline ore mines to aluminum smelters and foil mills
- The company employs over 62,000 people globally.
- Launched in 2018, Rusal's low-carbon ALLOW produces certified and independently verified metal with a carbon footprint level lower than 4t CO2/t Al, as compared to the world average at approximately 12t CO2/t.
Braidy Industries, Inc.:
Tel: + 606 200 5066
Mariana Quevedo Vallejo
Email: [email protected]
Phone: +1 917 446 1583
Tel: +44 (0) 20 7796 4133
Email: [email protected]
Hudson Sandler LLP
SOURCE Braidy Industries, Inc.