Rio Tinto plc Sponsored ADR (RIO.US) acquires aluminum company in Canada for $1.1 billion to expand North American aluminum industry in response to trade war.

According to informed sources, aluminum manufacturer Aluminerie Alouette, partly owned by Rio Tinto plc Sponsored ADR group (RIO.US), plans to invest up to 1.5 billion Canadian dollars (1.1 billion US dollars) in the modernization of its factory in northern Quebec. Sources say that the company has reached a new power supply agreement with Hydro-Quebec, a power supplier owned by the Quebec government. A spokesperson for Aluminerie Alouette declined to comment on the details but stated that an official announcement will be made on Friday. This investment is seen as good news for the aluminum industry facing pressure from the ongoing trade war with US President Donald Trump. The White House has imposed a 50% tariff on imported aluminum, which will impact US aluminum product users. For example, beer and spirits maker Constellation Brands Inc. stated on Wednesday that they expect the aluminum tariff to result in about $20 million in losses for the rest of the fiscal year. Canada is the largest supplier of aluminum to the US, as the US itself does not have enough aluminum smelting capacity to meet its demands. Quebec's Minister of Economy, Christine Frchette, stated on the social platform X on Monday: "The US needs Quebec to meet its demands, as we produce 70% of North America's aluminum. Our top priority remains protecting the local economy and workers." According to official information, Aluminerie Alouette is made up of Rio Tinto plc Sponsored ADR (holding 40%), AMAG Austria Metall AG, and Hydro Aluminium of Norway. The smelting plant in Sept-les, Quebec, employs around 900 employees and has an annual production capacity of 630,000 tons of primary aluminum.