New York, NY /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:
About Braidy Industries, Inc.:
For more information, visit www.braidy.com.
About En+ Group plc:
For more information, visit www.enplusgroup.com.
About United Company RUSAL plc:
SOURCE: Braidy Industries, Inc.Copyright 2019 PR Newswire. All Rights Reserved