German co. signs $70-mln deal to upgrade Rusal’s Yerevan foil mill
Oct 11 2004
Yerevan. (Interfax) – Germany’s Achenbach will start upgrading Russian
aluminum giant Rusal’s Armenal foil mill in Yerevan, Armenia, in the
middle of October under a contract worth $70 million signed on Friday.
A spokesman for Armenal told Interfax that a consortium of German
banks led by Bayerische Landesbank, the project’s financial consultant,
would lend $45 million and that Rusal would provide $25 million. German
state insurer Hermes is insuring the credit.
The contract states that the upgrade must start in the middle of
October and will take 18 months to complete. Armenal will achieve
full capacity by the end of the period.
The upgrade will turn Armenal into a fully integrated foil mill with
enhanced product range and increase profit margins. Capacity will
rise to 25,000 tonnes of foil annually.
The first trial consignment of 150 tonnes of foil should be produced
by the end of 2005.
Armenal said it was aiming for a 2.5%-share of the world aluminum
foil market by 2008.
Siemens will partner Achenbach in the upgrade. Orders worth $10
million will be placed with local factories.