Apr 10 2003
Sual, Russia's number 2 primary aluminium producer, plan to join forces with French metals giant Pechiney to construct a $2.1 billion dollar aluminium plant in the Komi Republic in Russia.
This is the second venture Sual have entered into this year with foreign partners. In the present case, Sual will retain a controlling share, while Pechiney, through its affiliate Pechiney Aluminium will own a 35-40% stake.
At this stage the companies have agreed to undertake feasibility studies. This will be followed by firming up of negotiations and a finalisation of the framework of co-operation.
The intended site for the plant is on a bauxite deposit controlled by Sual, with estimated reserves of 250 million metric tons.
The project will involve the construction of a alumina refinery with an annual capacity of 1.4 million tons. Of this 500,000 tons will be directed to an aluminium facility that will also be constructed as part of the joint venture.
While the agreement is yet to be finalised, construction on the plant is due to begin before the end of the year.
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