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UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), a leading global aluminium producer, announces that it has begun initial design work on a project to build a new casting line at the Krasnoyarsk aluminium smelter (“KrAZ”). The project is part of the Company’s strategy to increase the share of alloys in total aluminium output. Completion is expected in 2016. Total investment in the project is estimated at USD45 million.

The new casting line will produce a new size range of billets, including up to large diameter billets of 460 mm. Currently, RUSAL produces billets with a diameter of up to 200 mm, therefore greatly increasing our billet production abilities. The capacity of the line will be 120,000 tonnes per year. 

Evgeny Nikitin, Director of RUSAL’s Aluminium Division, commented: “Our consumers in construction, packaging and automotive industries will all benefit from the new alloys produced at KrAZ. Large diameter billets are in particular demand in the automotive industry, which are used to produce wheels for pickups and small trucks.”

The new project is part of the Company’s strategy to increase the share of value added products in total output. By the end of 2014, the share of VAP is expected to increase to 45% thanks to the modernization of casthouses at the Sayanogorsk (“SAZ”) and Khakass (“KhAZ”) aluminium smelters. Modernization works at the second casthouse at SAZ will be completed in November 2014 and total investment is expected to reach USD22.8 million. A further USD4.6 million will be invested in the modernization of the casthouse at KhAZ.

• [Editor:Phillip.Feng]