Actuality January 29, 2008

   The United Company RUSAL summed up the industrial and financial activity in 2007. As it is said in the official report, earnings grew more than 11 % and reached $14,3 billion (in comparison with $12,9 billion in 2006).

   The total amount of the company investments increased by 45 % to $2,9 billion, production of aluminum grew by 6 % (4,2 million tons), and total production of foundry industry with the added value grew by 16 % in comparison with 2006 and made about 2,1 million tons. Total production of alumina in 2007 grew by 5,1 % in comparison with 2006 and made more than 11,3 million tons, and total production of bauxite remained at level of 2006 and made 17,3 million tons.

   "We have finished the year successfully that opened a new stage in development of our company. Less than for six months we managed to carry out the process of integration of industrial assets within the bounds of the incorporated company and to achieve serious growth of industrial and financial activities, having assigned to itself the status of the world’s largest producer of aluminum and alumina. This result became possible due to successful close-out of project on exploiting of new capacities, such as Khakass aluminum factory, and modernization of the existing enterprises, including construction of two new buildings in Irkutsk aluminum factory. Besides, this year we have started realization of such large-scale projects as construction of Tajshetsky and Boguchansky aluminum factories and development of our power supply sources at the expense of use of water resources, coal and nuclear power that will allow to strengthen our position of the leader in long-term prospect", Alexander Bulygin, the director general of the United Company RUSAL, commented upon the results of the year. As he said, for assurance of the further business growth and the company value using as basis two key tendencies of world metallurgical branch – consolidation and diversification – and using their competitive advantages they are going to develop the company as diversified mining and smelting corporation which will be in the top five of world metallurgical giants. The acquisition transaction by the United Company RUSAL of 25 % plus 1 stock of Norilsk Nickel became the beginning of the living activities on creation of the first large-scale mining and smelting company in Russia by means of consolidation of the nonferrous metallurgy enterprises, and this year they will focus efforts on realization of this ambitious problem.

   As it is noted in the press-release, the production growth of aluminum volume and increase in volume of production with added cost became the result of running at full capacity of the Khakass aluminum plant, proceeding measures for modernization and expansion of production, including foundry, and technical re-equipment of the aluminum enterprises. And the increase in volume of alumina production was reached by means of close-out of modernization program at Achinsk and Nikolaev aluminous factories, and also optimization of production process at factory Eurallumina. And the output growth of foil rolling production made 28 % and is provided with planned running at estimated capacity of foil rolling plant Armenal.

   In 2007 the volume of investments into modernization, expansion, reconstruction and extension of capacities totaled more than $1,3 billion. So, last year the company finished the program of large-scale modernization of foundry that allowed to increase a share of foundry production with added cost almost ten times in comparison with the level of 2000 and to bring it to 50 % from total amount of aluminum production. Investments into the project made about $130 million. Another $85 million more were invested in the ecological program at Krasnoyarsk aluminum factory: as a result of modernization it was possible to reduce specific (per ton of aluminum) emissions of perfluorocarbons (PCFs) by 82 %. Last summer the United Company RUSAL also started ecological modernization of Bratsky aluminum plant. The project of the first stage of modernization at the cost of about $350 million is scheduled for four years and will be accomplished in 2011. In 2007 was invested $12 million in the project. Besides, in 2007 the program of equipment of Sayanogorsk aluminum factory with dry gas-cleaning installation, which allow to catch 99,5 % of substances polluting environment, was absolutely completed (capital investments in the plant made $105 million). At Nikolaev aluminous factory continued modernization with the aim to increase production volumes to 1,7 million tons of alumina a year. Works are planned to finish by 2009.