September 08, 2008

UC Rusal set to invest USD 5 billion in alumina sector by 2013

RIA Novosti reported that Russian aluminum giant United Company RusAL is planning to invest around USD 5 billion in alumina production until 2013.

Mr Pavel Ovchinnikov division director of Rusal said that the investment will help produce an extra 2 million tons a year, or some 18% of the 11.3 million metric tons produced in 2006. He said that "Our basic plan in the alumina division is to meet 100% of our plants' needs for bauxites by producing them ourselves." He added that "We currently meet 70% of all our bauxite needs."

Mr Ovchinnikov also said the company considered building alumina plants in Brazil and Vietnam. He said that "These are the most interesting and attractive countries for us in terms of alumina production, but we are not going to reveal details on these projects before any documents are signed."

United Company RusAL was established in March 2007 through a merger of Russian aluminum giants RusAl and SUAL and Swiss Glencore's alumina assets, accounts for 12% and 15% of the global aluminum and alumina markets, respectively.