April 26, 2018 / 3:07 PM / 2 years ago

Constellium says extension of Rusal deadline good for aluminium sector

FILE PHOTO: Compressed process scrap aluminium bundles ready for recycling are seen at the Neuf-Brisach Constellium aluminium products company's production unit in Biesheim, Eastern France, April 9, 2018. REUTERS/Vincent Kessler

LONDON (Reuters) - The aluminium sector has enough time to reorganise its supply chain that was disrupted by U.S. sanctions on Russian giant Rusal after Washington extended a deadline, product maker Constellium (CSTM.N) said on Thursday.

The United States on Monday gave American customers of Russia’s biggest aluminium producer until Oct. 23 instead of June 5 to comply with sanctions and wind down business with United Company Rusal Plc (0486.HK).

The global disruption to supply chains for both raw materials and metal were “quite spectacular”, so the delay announced on Monday was very welcome, Chief Executive Jean-Marc Germain told a results presentation.

“It (the extension) gives ample time as an industry to reorganise our flows so no one trips up.”

The Netherlands-headquartered company itself was not affected very much by the sanctions since Rusal supplied about 2-3 percent of its metal inputs, Germain added.

Constellium is one of the world biggest companies that produces aluminium products used in the automotive, aerospace and packaging sectors with 24 manufacturing sites and about 12,000 employees.

Reporting by Eric Onstad; Editing by Alexandra Hudson

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