13 May 2004 10:09
RusAl to work with Alcoa in sale of 2 metals plants
MOSCOW. May 13 (Interfax) - Russian Aluminum (RusAl) plans to work with Alcoa in the sale of two of its metals plants
- Belaya Kalitva Metallurgical Production Association (BKMPO) and Samara Metallurgical Plant (SMZ), to the U.S.
company.
"The agreement will mean cooperation in a whole range of areas," RusAl General Director Alexander Bulygin
told Interfax.
"This type of deal (the complete sale of the plants, rather than the establishment of joint ventures) complies
with the interests of both parties and corresponds with RusAl and Alcoa strategies," he said.
The deal envisages long-term aluminum deliveries from RusAl to BKMPO and SMZ. Alcoa will supply alumina to RusAl
plants and SMZ will supply can strips to the RusAl plant Rostar, which produces beverage cans.
Alcoa has confirmed that it will meet all commitments on long-term contracts made with SMZ and BKMPO.
Before the arrival of RusAl, less than 10% of the capacity at SMZ and BKMPO was being utilized, compared to about 50%
now. Alcoa plans to take the two plants to full capacity within five years, which will mean doubling current production.
Alcoa also plans to complete an investment project started by RusAl to produce three types of can strips at SMZ,
enabling the plant to turn out more value added products.
Bulygin said Alcoa would not monopolize production of certain products.
"Russia has the capacity to produce similar products to those made at SMZ and BKMPO. SUAL and VSMPO make these
products. The only exception is can strips, which SMZ produces, but Alcoa is tied by a long-term contract for supplies
of this product to Rostar," he said.
Russian Aluminum is one of the world's top three aluminum companies. [RU ASIA EUROPE EEU EMRG US ALU MET CORA
MRG] me
[Interfax] |
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