RUSAL Plans for Fundamental Transformation
Leading Russian aluminium producer RUSAL announced that it is pursuing a demerger of its higher carbon assets to unlock value through the creation of
Leading Russian aluminium producer RUSAL announced that it is pursuing a demerger of its higher carbon assets to unlock value through the creation of two businesses with separate strategies. The Board of Directors has given approval to a proposal from management, which is in line with the Company’s ambitious environmental goals and strategy to achieve carbon neutrality by 2050. The proposed transformation would result in two companies focusing on the execution of their own independent strategies to drive value for stakeholders: RUSAL would focus on reinforcing its position as a leading producer of low-carbon aluminium and the new company would concentrate on the development of the domestic market and its growth potential.
With this transformation plan, RUSAL has taken another major step towards reaffirming its intent on remaining the largest producer of low-carbon aluminium with its market-leading brand ALLOWS. Thanks to its extensive usage of clean energy sources such as hydropower, the Company is committed to providing the market with the lowest carbon footprint aluminium possible. RUSAL will be better positioned to reach its full potential as a sustainable business, developing ground-breaking inert anode technology which delivers the promise of carbon free aluminium production.
RUSAL’s management has proposed to change the name of the Company to “AL+”. The Board of Directors included this item as part of the Company’s annual shareholders meeting agenda, scheduled for 24 June 2021. The new AL+ brand represents the Company’s core values and environmental stewardship progress. It reflects the Company’s position as one of the world’s largest manufacturers of sustainable, value-added, low-carbon aluminium, highlighting its dynamic, innovative, international and technological focus.
Following the proposed demerger, the newly created company would concentrate on promising growing markets and deliver a long-term modernisation programme, as announced in April. The new company is expected to comprise alumina refineries located in Russia (Achinsk, Bogoslovsk, Urals and Pikalevo) and smelters in Bratsk, Irkutsk, Novokuznetsk, Volgograd and Kandalaksha. As part of the aforementioned long-term environmental modernisation programme, the new company would replace most of its presently installed electrolysis lines with new ones using the most up-to-date pre-baked smelting technology.
The proposed transformation requires consultation with the stakeholders of the Company and may be subject to regulatory, lender, shareholder and other third-party approvals.
After the demerger, allocation of key assets will be as follows.
Aluminium smelters – Krasnoyarsk, Sayanogorsk, Taishet, Khakas, Boguchansky, KUBAL
Alumina refineries – Nikolaev, Aughinish, EurAllumina, QAL, Friguia,
Mining assets – Kindia, Dian Dian, BCGI
Enterprises of the Downstream division (production of aluminium foil, car wheels, powders etc.)
The new company
Aluminium smelters – Bratsk, Irkutsk, Novokuznetsk, Volgograd and Kandalaksha
Alumina refineries – Achinsk, Bogoslovsk, Urals and Pikalevo
Mining assets – North Urals Bauxite Mine, Timan Bauxite