Only expensive electric energy can stop Rusal from selling primary aluminium?

UC Rusal announced about the changing of the profile of the Volkhovsky aluminium plant (VAZ) for production of alloys for car manufacturing industry.
Now the new equipment is being assembled at the plant. The capacity of the casting shop is 24 thousand tons of aluminium alloys a year, that corresponds to the production volume of primary aluminium at VAZ.
Changing the profile is planned for December 2011, the enterprise invests $3 mln into the project. The general contractor of the project is the German company JASPER. The casting complex will produce the aluminium alloy A356.2, wheel disks for cars are produced out of them.
VAZ has become the first plant of Rusal that we totally turn to the production of goods with high added value in the framework of the general program of changing the profile of production capacities of the aluminium division “West” for the production of alloys. The goal of the program is the output of demanded products that meets the modern requirements of consumers, raising the profitability of enterprises, closer cooperation with final consumers. For faster launch of the casting complex at VAZ we actively work on the launch of a new furnace for alloys, the director of the aluminium plant “West”, A. Arnautov said.
The program was accepted due to the fact that the production of primary aluminium at the enterprises of the division in the current market conditions is becoming less and less profitable. Alloys are the products of higher margins.
The analyst of IK BFA, S. Kazantsev thinks the changing of the profile to be right. Rusal recently cleared the balance of large debts, and because of that the company is ready for dividends and capital investments, S. Kazantsev says. It is logical that the company changes the profile of the plants for a more profitable business. The Volkhovsky plant is not large, it has its own electricity station, that is extremely important for aluminium companies. It is profitable to produce goods with high added value there.
A. Arnautov says that now a good volume of car wheels produced in Turkey, Vietnam, Korea are imported in Russia. The way of aluminium circulation is very unnatural: metal is purchased in Russia, disks are produced in Korea and are supplied for sales into Europe. As a result we have high expenses. So we would like to find partners that would produce car spare parts out of our alloy. Rusal suggests the producers of car spare parts to construct their capacities near the casting capacities of Rusal, that will sell them melted metal, and car spare parts will be produced out of it. The saving in such a system will concern not only transport but on the absence of expenses for remelting. We hold such negotiations. However, they still go on and we don’t have the right to name the future companies-partners.


Translated by Galiya Musabekova

Oil and Gas, Metals and Mining, News from Russia and neighbouring countries
42a Pushkina Street; Ufa, Bashkortostan 450076; Russia
E 54° 43.48836" N 55° 55.52346"
Telephone: +7 927 303 00 25

Theme by Danetsoft and Danang Probo Sayekti inspired by Maksimer