Free Newsletter
Register for our Free Newsletters
Newsletter
Zones
Advanced Composites
LeftNav
Aerospace
LeftNav
Amorphous Metal Structures
LeftNav
Analysis and Simulation
LeftNav
Asbestos and Substitutes
LeftNav
Associations, Research Organisations and Universities
LeftNav
Automation Equipment
LeftNav
Automotive
LeftNav
Biomaterials
LeftNav
Building Materials
LeftNav
Bulk Handling and Storage
LeftNav
CFCs and Substitutes
LeftNav
Company
LeftNav
Components
LeftNav
Consultancy
LeftNav
View All
Other Carouselweb publications
Carousel Web
Defense File
New Materials
Pro Health Zone
Pro Manufacturing Zone
Pro Security Zone
Web Lec
Pro Engineering Zone
 
 
 
News

Alcoa receives final approval to acquire fabricating facilities in the Russian Federation

Alcoa : 31 December, 2004  (Company News)
Alcoa has received final approval from the Government of the Russian Federation to proceed with its purchase of Rusal's controlling interests in two fabricating facilities in Samara and Belaya Kalitva in the Russian Federation.
Alcoa has received final approval from the Government of the Russian Federation to proceed with its purchase of Rusal's controlling interests in two fabricating facilities in Samara and Belaya Kalitva in the Russian Federation.

The approvals follow upon an understanding between Alcoa and the Federal Anti-Monopoly Service (FAS) resulting in an FAS private ruling on behavioural conditions to ensure that Alcoa complies with various legal requirements and notification obligations. In addition, Alcoa reached an agreement with a state-owned procurement company guaranteeing that it will maintain the capability to supply certain Russian domestic needs through continued production at the two facilities.

An Executive Order issued on 22 December 2004 allowed the agreement to be finalized and the behavioural conditions to be issued. These documents ensure the national interests of the Russian Federation have been addressed while also providing an additional legal framework for Alcoa's investment.

With the final government approvals in place, Alcoa and Rusal are taking the necessary steps to complete the transaction. Terms of the transaction will be disclosed when the deal has been completed, which is expected at the end of January 2005.

“We welcome this decision by the Russian government,” said Alain Belda, Alcoa Chairman and CEO. “We have had good and productive consultations with the Russian government throughout this process and we are encouraged by this opportunity to invest in Russia. We are pleased that we have addressed the Russian government's concerns about the role these plants play in supporting domestic production and infrastructure needs. And we believe that the final working arrangements will protect both Alcoa's interests and those of the Russian Government. We look forward to continuing to work with both federal and local government officials as we expand our presence in Russia.”

“The decision is an important step forward for both Alcoa and for RUSAL,” said Alexander Bulygin, RUSAL's CEO. “For us, it means we can move ahead with our strategic focus on upstream and alloy production, and on expanding our raw materials access. We welcome Alcoa to Russia and anticipate continuing close relations in the future.'

The Samara facility is located about 500 miles south-east of Moscow. It features cast house, flat rolled products, extrusion, and forging capabilities and serves customers in many markets, including transportation, packaging and industrial products. The plant's production and quality control systems have been ISO 9001/9002 certified and is preparing for the ISO 14001 certification in Ecological Management.

The Belaya Kalitva facility is located about 500 miles south of Moscow. The facility also features cast house, flat rolled products, extrusions, tubes and forgings capabilities. The Belaya Kalitva facility has specialized plate rolling and finishing equipment that will complement and increase Alcoa's present supply position. With Alcoa know how and management systems, the plant will not only be able to expand the product offerings for Russian customers but eventually will be able to produce products for major customers in the west. The plant is ISO 9001 certified and is preparing for the ISO 14001 certification in Ecological Management.

As part of Alcoa, the two fabricating facilities will serve both the growing Russian market and global customers in Europe, Asia and the Americas. The two facilities will join Alcoa's flat rolled products manufacturing system with operations in the US, Europe, Australia, China and Brazil; the company's extrusion facilities in the US, Europe, Brazil and Korea; and its wheels and forged products system with facilities in the US, Mexico, Japan and Europe. A team headed by Phil Collins, Alcoa Country Manager - Russia, has been organized to help facilitate the integration into Alcoa. Collins, who oversaw the successful integration of similar assets in Hungary into Alcoa, reports to Ric Belda, Executive Vice President European Region.

Rusal, a world leader in aluminium production was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia's primary aluminium output and 10% of the global primary aluminium output. It is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. Rusal is based in Moscow.

Bookmark and Share
 
Home I Editor's Blog I News by Zone I News by Date I News by Category I Special Reports I Directory I Events I Advertise I Submit Your News I About Us I Guides
 
   © 2012 NewMaterials.com
Netgains Logo