Rusal proposes merger with rival aluminium giants
merge with two of its major rivals as it looks to consolidate its
role in the aluminium sector.
The announcement shows the growing importance of the aluminium sector particularly in Russia's growing packaging industry.
By combining its operations with leading refiner Sual, and commodities supplier Glencore, the company hopes to become a fully sufficient aluminium company, overseeing all levels of production from raw material, through to formulation of foil and beverage cans.
Rusal's Vera Kurochkina told CEE-Foodindustry.com that the merger of the three companies was an "ideal fit".
"Rusal brings great strength in primary aluminium production and advanced technology, Sual - the country's largest alumina refining capacities, while Glencore provides an international spread of bauxite and alumina assets. In one move, we have overcome the historic weakness of the Russian aluminium industry - lack of raw materials, such as bauxite and alumina," she said.
Earlier this month the company announced it was investing in its Armenian plant to help push sales of aluminium foil amidst growing demand from the food industry both domestically and through the wider CIS region and Asia.
Though the merger has yet to be ratified by Russian and other international antitrust regulators, the companies hope to push through with the deal by 1 April 2007.The combined group will be re-branded as United Company Rusal.
The conglomerate would be present in over 70 countries allowing them to take full control of every aspect of their operations on a global scale, said Kurochkina.
She added that if the deal is successfully concluded, the company would be a dominant force in the packaging and wider aluminium industry.
"The combining of Rusal and Sual creates a Russian national aluminium champion; the addition of Glencore's alumina assets transforms the new company into a truly global player," said Kurochkina.
