The joint venture will be based on a 50:50 deal between the two companies and the production site based at one of Rusal's Aluminium Division West smelters.

In a nutshell, Rusal will supply the liquid aluminium alloys and Omen will transform them into 'cutting-edge automotive components in line with the best global standards'.

Both parties will invest equality in the joint venture and there is also an option on external borrowings.

The joint venture will be given thought by both companies over the next three months.

Alexey Arnautov, UC Rusal's director for Aluminium Division West, said the joint venture was in line with the company's stated strategy 'to switch production at our Aluminium Division West smelters to value-added products'.

Arnautov added that Rusal's Aluminium Division West smelters are currently producing added-value products for the Russian automotive industry, which, he said, had experienced strong growth of late.

"This is a trend we expect to continue over the next seven to eight years," he concluded.