Rusal is to acquire the business and assets of Aluminium Rheinfelden out of insolvency.

Aluminium Rheinfelden is a German manufacturer of aluminium alloys, semis and carbon-based components and a supplier to the global automotive industry.

"Aluminium Rheinfelden's track record of innovation and R&D, combined with its technical expertise [the company owns over 70 patents] and deep connections into the automotive sector, will help reinforce Rusal's position as the supplier of choice to its international network of automotive customers," said a Rusal statement.

"The transaction is expected to deliver strong commercial synergies by matching Aluminium Rheinfelden's high end, niche product focus with Rusal's global scale low-carbon aluminium alloy production.

"As part of its long term growth strategy, Rusal intends to rebuild the Aluminium Rheinfelden businesses and restore the majority of existing roles, unlocking the potential of its R&D platform to deliver a new generation of sustainable aluminium solutions that can be produced on an industrial level in combination with Rusal's smelters. The company aims to grow Aluminium Rheinfelden's alloys production back to 30kt of output on an annual basis."

The takeover is subject to approval by the German Federal Ministry for Economic Affairs and Energy and the German Federal Cartel Office.