UC RUSAL and Israeli company Omen to establish joint venture to produce automotive components
UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; Moscow Exchange: RUALR/RUALRS), a leading, global aluminium producer, announces the signing of a memorandum of understanding with Israeli company Omen High Pressure Die Casting ("Omen"), which specializes in the production of automotive components from non-ferrous metals. Together the companies intend to create a joint venture ("JV") in Russia to produce automotive components made of aluminium, to be supplied to carmakers in Russia and the CIS.
The JV, which is to be held in equal share (50/50), will be based on a production site at one of RUSAL's Aluminium Division West smelters. RUSAL will supply the liquid aluminium alloys and Omen will in turn create cutting-edge automotive components production, in line with the best global standards. The financing will be provided on a parity basis, with the option of external borrowings. The project is to be considered by the parties in the next three months.
'The launch of the automotive components production joint venture is in line with our stated strategy to switch production at our Aluminium Division West smelters to value-added products, providing an excellent development opportunity in a challenging market. The Division's smelters currently produce value-added products for Russia's automotive industry, which has experienced strong growth in the last few years. This is a trend we expect to continue over the next 7-8 years,' said Alexey Arnautov, UC RUSAL's Director for Aluminium Division West.
Omen High Pressure Die Casting was founded in 1946. The company, based in Kibbutz Hatzor, Israel, produces aluminum and brass high-pressure die casting products. It offers automotive engine products, such as oil pump covers, fuel pump covers, oil pan support products, water outlets, cylinder head covers, water inlets, bracket AC compressors, water pump covers, valve covers, rocker arms, crankshaft support, oil pump bodies and others.