Japan’s Kosei taps Rusal for new aluminum supply deal

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One of the world’s leading producers of low-carbon aluminum, UC Rusal, announced a new collaboration with Japanese automotive component manufacturer Kosei, signifying yet another step in its over 30-year journey.
Last week, the Russian aluminum giant Rusal said Kosei had selected it to be its global supplier of high-quality aluminum alloys.
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Rusal-Kosei aluminum supply deal

Kosei, set up in 1950, designs and manufactures vehicle wheels and autoparts. The firm operates from seven countries.
In the last 30 years, Rusal has proved to be a key partner of Kosei. Rusal has supplied the Japanese company with primary foundry aluminum alloys. Kosei uses in the material in factories in India, Japan, Thailand, and the US.

As part of the new deal, Rusal will be selling its proprietary low-carbon aluminum “ALLOW” to Kosei. ALLOW is a low emitting aluminum, pushing out about 2.4 metric tons of CO2 per metric ton of metal smelted. Meanwhile, that compares to the industry standard of about 12 metric tons of CO2 per metric ton of aluminum.
In fact, just last year, Rusal joined the Japan Climate Leaders’ Partnership (JCLP), a coalition of businesses seeking to advance the goals of decarbonization and sustainable business.
JCLP has 163 member companies, contributing to its stipulated aim of a carbon-free future.

End uses

The “green” metal ALLOW is used to produce wheels and other auto components for global brands like Toyota, Honda, Nissan, and Suzuki, to name a few.
Kosei President Shunkichi Kamiya, in a press release announcing the aluminum supply deal between the two companies, pointed out the two companies have a long-running supply relationship. He added he hoped the partnership with Rusal would continue for many years in the future.

Bullish future

Rusal has been quite bullish on the future of aluminum during the COVID-19 pandemic.
It recently said demand for the metal is on a path of recovery, despite the pandemic.
Rusal recently announced its intent to acquire the business and assets of the Aluminium Rheinfelden GmbH, bring it out of insolvency. With the move, Rusal indicated aims to complement its global scale, low-carbon aluminum production with Aluminium Rheinfelden’s niche product focus. Aluminium Rheinfelden manufactures aluminum alloys, semis and carbon-based components. Furthermore, the German firm is a major supplier to the global automotive industry.
In addition, the German firm also owns over 70 patents in the automotive sector. As such, the acquisition by Rusal will help reinforce its position as a major global provider of automotive aluminum.
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