UC RUSAL, one of the world’s largest aluminium producers, and ELKA-Cable, a cable product company, signed a shareholders’ agreement to create Bogoslovsk Cable Plant, a jointly owned facility producing cables and wires.
The partners will have an equal number of shares in the joint venture and the total investments are estimated at around USD 19 mln. The new facility will be set up within the site currently occupied by RUSAL’s Bogoslovsk aluminium smelter (BAZ). Once the new plant reaches its full capacity, it will be making 4.3 thousand tonnes of aluminium products per year in terms of the metal used, including oil-submersible cables, flexible cables and displaceable wires and self-supporting insulated wires - all these for Russia and the CIS market. In the future, the product range may be expanded.
“This joint venture will enhance our presence in the cable and wire sector, which is among the largest and fast-growing aluminium consumption segments,” said Alexey Arnautov, Director for New Projects of UC RUSAL. “The new plant will also have a favourable socio-economic impact on Krasnoturyinks, which is essentially a single-industry town, creating around 100 new jobs”.
The launch of the Bogoslovsk Cable Plant is scheduled for late 2016. Currently, equipment foundations are being constructed, to be followed by equipment installation and commissioning.
Information about the partners
ELKA-Cable - is involved in development, production and sales of new types of cable and wire products. The company places its orders with leading cable plants in Russia and other CIS countries. The current product range includes several brands: ELKACABLE (power cables for fixed installations), ELKALINE (non-insulated wires for high-voltage lines and SIP-grade wires), ELKAFLEX (flexible cables), and ELKAOIL (oil-submersible cables).
RUSAL - is a leader in the global aluminium industry. In 2015, it accounted for 7% of global aluminium production and 7% of global alumina output. The Company employs around 61,000 persons in 20 countries on 5 continents. RUSAL’s products are main sold in Europe, North America, South-East Asia, Japan, China and Korea. Ordinary shares of the Company are traded on the Hong Kong Stock Exchange (code 486), while global depositary receipts representing the ordinary shares of RUSAL are traded on Euronext in Paris (Rule S code: RUSAL; Rule 144A code: RUAL). Also, the Company’s ordinary shares and Russian depositary receipts are traded on the Moscow Exchange (code for shares: RUAL; code for RDRs: RUALR).
For more information, please visit: http://www.rusal.ru