UC Rusal and Hebei Joy Sense Cable Co., Lt (HJSC) have signed an agreement to establish the joint venture (JV) ‘JSC RUSAL-HEBEI JOY SENSE CABLE Special Aluminium Products Co. Ltd. Investments’.
At this stage, the Partners will invest USD 1 mln dollars and will make further investment decisions on completion of the feasibility study.
JSC Rusal-Hebei Joy Sense Cable Special Aluminium Products Co. Ltd. is established in the form of Sino-foreign equity joint venture with equal ownership stakes of 50% between the Partners. The JV will be a production and sales company with the production located at HJSC’s facilities in Shijiazhuang, Hebei Province, 300km from Beijing. The existing facilities will be developed and modernised to meet the manufacturing requirements of the JV.
The JV will produce aluminium cable products for modern power supply, such as high-temperature cables for overhead transmission lines made of aluminium-zirconium alloy produced under Rusal’s license, cabling and wiring products for solar and wind energy, and more. The JV will be able to process 72 thousand tonnes of aluminium wire rod per year at full capacity. On top of cabling and wiring products manufacturing and sales, the JV’s scope of business will include research, development, provision of technical services and client support.
The JV’s products will be supplied primarily to China, Southeast Asia and India, as well as other countries included in the PRC government’s list of ‘Silk Road Countries’.
In order to ensure the operational efficiency of the JV, HJSC will primarily focus on the required organisational settlements, due licensing, administrative arrangements providing the best terms of operation, as well as obtaining the best local expertise. Rusal will focus on providing the technologies, equipment, technical support and expertise for the best product quality and finest standards production. This agreed combination of responsibilities creates the most efficient operations settlement ensuring the best production quality and sales set up.
UC Rusal CEO Vladislav Soloviev noted: “The project has been implemented within our strategy to extend the collaboration with Chinese partners. The usage of aluminium and its alloys in cable production has been regulated in China by a special standard as of July, 2015. RUSAL and Hebei Joy Sense Cable agreed to use this opportunity to enter the market of aluminium and alloy cable production. Rusal’s expertise in aluminium alloys production combined with HJSC’s position in the cable products market will generate a strong set of competitive advantages for the newly created joint venture, as well as an excellent positioning for entering the market.”