Prime-Tass English-language Business Newswire
October 8, 2004
RusAl to invest $70 million to upgrade its Armenal plant
MOSCOW, Oct 8 (Prime-Tass) — Russia’s largest aluminum producer
Russian Aluminum (RusAl) plans to invest U.S. USD 70 million
upgrading its 100%-owned foil making subsidiary in Armenia, Armenal,
starting later this month, RusAl said in a press release Friday.
According to the press release, RusAl will invest USD 25 million of
its own funds and another USD 45 million will come as a long-term
export loan from a group of German banks, led by Bayerische
Landesbank.
RusAl plans to modernize equipment and raise the capacity of the
plant, concentrating on production of thin foil.
Germany’s Achenbach, having made a feasibility study for Armenal’s
upgrading program, is to act as a contractor. The project is to take
18 months to complete, and is to produce the first pilot batch of
thin foil by the end of 2005.
After realizing the project, Armenal’s output of thin foil, six-nine
micrometers in thickness, is expected to increase to 18,000 tonnes
per year. The plant has never produced thin foil for industrial
purposes, the press release read.
By 2008, Armenal’s share of the world market for thin foil production
is expected at about 2.5%, the press release read.
In 2003, Armenal’s output amounted to 10,476 tonnes of foil.
RusAl is the third largest primary aluminum producer in the world,
established in March 2000 from the merger of a number of the largest
smelters and other aluminum producers located in the CIS. RusAl
accounts for 75% of Russia’s primary aluminum output and 10% of the
global primary aluminum output.
The company’s shareholders are Oleg Deripaska and the Governor of the
Chukotka Autonomous District Roman Abramovich, who hold 75% and 25%
respectively. End