Norinco sells primary aluminium in China and South-East Asia, and that it has agreed with UC Rusal on the creation of a joint venture to produce aluminium alloys.
The agreement will see Rusal take an active role in the management of the trading company. Two Rusal representatives will join the board of directors, one of whom will be appointed chairman. In addition, Rusal will be entitled to appoint a vice-chairman of the board of supervisors and a deputy CFO.The transaction is scheduled for completion in the first quarter of 2011.
The two companies will establish a joint venture to produce and sell aluminium alloys, including semi-finished parts for production of aluminium cans, slabs and billets for production of aluminium profiles as well as wheel alloys.
Rusal will provide facilities at its plants to commission production, supply liquid metal, and assist in the organisation and control of the technology process. Norinco will supply the equipment, provide resources for the production engineering and equipment assembly, as well as working capital. It is expected that Rusal’s share in the joint venture will be not less than 51%.
Oleg Deripaska, Rusal CEO said: “The geographical proximity of Rusal’s smelters to China enables us to offer the most favorable conditions to our partners in Asia. Commissioning modern, high-tech and environmentally friendly production in Siberia, which will focus on supplying Asian consumers, is a clear demonstration of our commitment to this market.”