Russia will build an aluminum plant in the United States: why is it profitable?
The Russian company RUSAL and the American Braidy Industries are planning to build a plant for the production of aluminum in the United States. The project cost is estimated at $ 1,5 billion, RUSAL’s contribution will amount to $ 200 million, but at the same time it will receive a 40% stake in the new enterprise.
Project of similar scale American economy I have not seen for about three decades. In the early 90s, the United States produced about 20% of all aluminum in the world, however, during the protracted crisis, the destruction of key enterprises took place, which led to the complete decline and degradation of the American aluminum industry, and the production of aluminum products was intercepted by foreign enterprises.
To restore the American aluminum industry, US President Donald Trump imposed duties on imported aluminum, which gave an almost instant result. Some old plants began to open in the United States and started talking about creating new ones, including a plant with the participation of RUSAL.
Recall that earlier the RUSAL company came under severe American sanctions, the condition for the cancellation of which was a reduction in the share of the General Director Oleg Deripaska in the company to 40%. The requirements were met and the sanctions lifted. According to some commentators, the decision to build a plant in the United States is another payment for the lifting of sanctions.
The construction of a new plant in the United States will be beneficial for Russia, since the enterprise will not be engaged in production, but in the processing of aluminum, which in turn will be supplied from a Russian plant in the Irkutsk region. It is important that the import duty will now be paid not by Russia as a supplier, but by a Russian-American joint venture, at a rate of only 10%, which will give significant competitive advantages over other foreign companies.
Project of similar scale American economy I have not seen for about three decades. In the early 90s, the United States produced about 20% of all aluminum in the world, however, during the protracted crisis, the destruction of key enterprises took place, which led to the complete decline and degradation of the American aluminum industry, and the production of aluminum products was intercepted by foreign enterprises.
To restore the American aluminum industry, US President Donald Trump imposed duties on imported aluminum, which gave an almost instant result. Some old plants began to open in the United States and started talking about creating new ones, including a plant with the participation of RUSAL.
Recall that earlier the RUSAL company came under severe American sanctions, the condition for the cancellation of which was a reduction in the share of the General Director Oleg Deripaska in the company to 40%. The requirements were met and the sanctions lifted. According to some commentators, the decision to build a plant in the United States is another payment for the lifting of sanctions.
The construction of a new plant in the United States will be beneficial for Russia, since the enterprise will not be engaged in production, but in the processing of aluminum, which in turn will be supplied from a Russian plant in the Irkutsk region. It is important that the import duty will now be paid not by Russia as a supplier, but by a Russian-American joint venture, at a rate of only 10%, which will give significant competitive advantages over other foreign companies.
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