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Russia - UC RUSAL and Omen agree key details of automotive components joint venture

Moscow, 20 June 2013 - UC RUSAL, a leading, global aluminium producer, and Israeli company Omen High Pressure Die Casting ("Omen"), which specializes in the production of automotive components from non-ferrous metals, announce the signing of a memorandum outlining details of the creation of a joint venture to produce automotive components.

The JV, which is to be held in equal share (50/50), will be based on a production site of the Volkhov aluminium smelter (VAZ). RUSAL will provide the joint venture with a 10-15k square m production and operation space with a ready infrastructure and will supply the non-alloyed secondary aluminium in 500 kg sows. Omen will in turn create cutting-edge automotive components, in line with the best global standards. The financing will be provided on a parity basis, with the option of external borrowings.

"Automotive component production at VAZ will mark a new page in the history of RUSAL's oldest smelter. The retrofitting of the production site is being made in line with the Company's complex capacity optimization program. Aluminium production at VAZ will be substituted with the production of value added products. We anticipate that the auto components produced at VAZ will be supplied to the promising domestic car market of Russia and CIS," commented Vladislav Soloviev, first deputy CEO of RUSAL.

Source: Opens external link in new window4-traders.com

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