Co. Rusal (UC Rusal) will convert its loss-making Russian
aluminum smelters to the production of vehicle components, as
well as rolled and cable products, it said Sept. 30.
To fund the
transformation, the Moscow-based aluminum producer has signed a
memorandum of intent with Russian state-owned development bank
facilities will be constructed at the Bogoslovsk, Urals,
Nadvoitsy, Kandalaksha, Volkhov and Volgograd aluminum
smelters, all part of UC Rusals Aluminium Division West.
New facilities are also feasible at the companys other
Finished goods will be
supplied to the Russian market, where Russian and foreign
carmakers have commitments to boost the share of Russian-made
parts in their supply chains.
Under the agreement,
UC Rusal will attract investors, provide existing industrial
infrastructure and ensure aluminum supply to the
facilities to downstream production and attracting financing
from VEB, UC Rusal hopes to return these smelters to
However, the impact on
London Metal Exchange aluminum prices is likely to be minimal
against the effect that would be seen if the company cut the
A version of this
article was first published in AMM sister publication Metal