Russian Ruling Sets Stage for Aluminium Industry Revival

Apr 04, 2001, 01:00 ET from OAO Russian Aluminium

    MOSCOW, April 4 /PRNewswire/ -- Russian Aluminium, bringing together
 facilities employing 73,500 employees and generating over $4 billion in annual
 revenues, today confirmed that it has been granted governmental clearance to
 proceed with formation of the world's second largest aluminium company.
     The decision clears the way for the RusAl shareholders to formally sign
 over shares in what will become subsidiaries of the new organisation.
 An independent appraisal has placed a value of 23.124 billion roubles
 (approximately $800 million) on these pledged shares. Company estimates
 suggest similar assets located in conventional markets might be worth
 approximately $5 billion.
     The Russian Ministry for Anti-Monopoly Policy issued its ruling
 Friday, 30 March, and made it public Tuesday 3 April.  The ruling stipulates
 that market shares currently held by RusAl's constituent companies should not
 be permitted to vary, and that the Ministry must be informed of any further
 planned acquisitions in the aluminium industry during the next five years.
     RusAl's plans, first revealed early last year, are intended to create a
 vertically integrated industrial complex capable of competing with other
 leading international aluminium producers.  The demise of the Soviet Union a
 decade ago and subsequent privatisation of the industry left individual mines,
 smelters and other facilities to their own devices for both essential inputs
 and for markets.  This led to considerable disorder in the Russian market.
     Russian Aluminium's formation, the brainchild of two leading Russian
 investor groups -- shareholders in Sibirsky Aluminium and core shareholders in
 the major oil company Sibneft -- has been widely credited with bringing this
 troubled period to an end and with laying the basis for much-needed
 rationalization and modernization of the industry.
     Facilities operating as part of Russian Aluminium include:
 
     Alumina production:  Achinsk Alumina Refinery
 
     Primary aluminium production:  Bratsk Aluminium Smelter, Krasnoyarsk
      Aluminium Smelter, Sayansk Aluminium Smelter
 
     Processing:  Samara Metallurgical Smelter, Belaya Kalitva Metals Plant,
      Sayansk Foil Mill, ROSTAR, Dmitrov Aluminium Rolling Mill (DOZAKL),
      Aluminium Construction Elements (ASK), Aluminium Consumer Products (BAT).
 
 

SOURCE OAO Russian Aluminium
    MOSCOW, April 4 /PRNewswire/ -- Russian Aluminium, bringing together
 facilities employing 73,500 employees and generating over $4 billion in annual
 revenues, today confirmed that it has been granted governmental clearance to
 proceed with formation of the world's second largest aluminium company.
     The decision clears the way for the RusAl shareholders to formally sign
 over shares in what will become subsidiaries of the new organisation.
 An independent appraisal has placed a value of 23.124 billion roubles
 (approximately $800 million) on these pledged shares. Company estimates
 suggest similar assets located in conventional markets might be worth
 approximately $5 billion.
     The Russian Ministry for Anti-Monopoly Policy issued its ruling
 Friday, 30 March, and made it public Tuesday 3 April.  The ruling stipulates
 that market shares currently held by RusAl's constituent companies should not
 be permitted to vary, and that the Ministry must be informed of any further
 planned acquisitions in the aluminium industry during the next five years.
     RusAl's plans, first revealed early last year, are intended to create a
 vertically integrated industrial complex capable of competing with other
 leading international aluminium producers.  The demise of the Soviet Union a
 decade ago and subsequent privatisation of the industry left individual mines,
 smelters and other facilities to their own devices for both essential inputs
 and for markets.  This led to considerable disorder in the Russian market.
     Russian Aluminium's formation, the brainchild of two leading Russian
 investor groups -- shareholders in Sibirsky Aluminium and core shareholders in
 the major oil company Sibneft -- has been widely credited with bringing this
 troubled period to an end and with laying the basis for much-needed
 rationalization and modernization of the industry.
     Facilities operating as part of Russian Aluminium include:
 
     Alumina production:  Achinsk Alumina Refinery
 
     Primary aluminium production:  Bratsk Aluminium Smelter, Krasnoyarsk
      Aluminium Smelter, Sayansk Aluminium Smelter
 
     Processing:  Samara Metallurgical Smelter, Belaya Kalitva Metals Plant,
      Sayansk Foil Mill, ROSTAR, Dmitrov Aluminium Rolling Mill (DOZAKL),
      Aluminium Construction Elements (ASK), Aluminium Consumer Products (BAT).
 
 SOURCE  OAO Russian Aluminium