Rusal's BAZ to Produce 33,000 Tonnes of Aluminum Wire Rods per Year after Updates



UC Rusal's Bogoslovsk Aluminum Smelter (BAZ) plans to produce 33,000 tonnes of aluminum wire rod per year after the completion of its modernization, Rusal's representative in the Ural Federal District, Roman Lukichev reported. He said BAZ does not currently produce wire rods.

Rusal, the world's biggest aluminum producer, has approved the final version of a $25 million project to modernize the casting division of the sixth series at BAZ. The project will include the installation of a new line for production of wire rods. This decision was made in accordance with the agreement that was signed in September 2012 by managers of Rusal, the BAZ union and the authorities.

In line with the September 16, 2012 agreement, financing for the project is to be provided by Vnesheconombank (VEB) at 7% annual interest.

The deputy chairman of the Sverdlovsk Region government, Alexander Petrov said at a press conference at Interfax's press center in Yekaterinburg on Thursday that the region is experiencing a shortage of aluminum wire rods.

"Our Ural is ready to use it, and in fairly large quantities. Therefore, I think that this is absolutely the right direction and a very good business plan that will be supported not only at the regional level but also at the federal," Petrov said.

He also said that a project to produce aluminum lithium alloys for the aircraft industry is being considered with Kamensk-Uralsky Metallurgical Plant (KUMZ) (RTS: KYMZ).

"There was a meeting at the Industry and Trade Ministry of Russia dedicated to this area with the participation of our leading institute VIAM. The need to create such alloys was confirmed because aluminum lithium alloys in aircraft structures make it possible to make this structure 30% lighter and this, you understand, is very significant,' Petrov said, adding that some of the aluminum in this field could come from both the Bogoslovsk and Ural aluminum smelters.

In addition, a casting plant is being built in Krasnoturyinsk with CJSC Energy Projects, which could step into the old divisions of BAZ. "This company plans to produce aluminum castings for the electrical engineering, aircraft and automotive industries," Petrov said.  A project to produce aluminum powders is also continuing to develop, he said.

In December 2012, Rusal and state nuclear power company Rosenergoatom signed a two-year agreement to supply electricity to BAZ at a price of $0.03/kWh, which will enable the smelter to preserve part of its electrolysis facilities in 2013-2014.

Rusal and the regional government, with the participation of VEB, also agreed to buy out a number of facilities for production of heat, steam and electricity of the Bogoslovsk and Novo-Bogoslovsk combined heat-and-power plants in Krasnoturyinsk and the Krasnogorsk combined heat-and-power plant in Kamensk-Uralsky.

BAZ, the biggest electricity customer of the Bogoslovsk power plant, produces aluminum and alumina, and aluminum silicon and aluminum magnesium alloys used in engineering and the aircraft industry, as well as for protection against corrosion. The smelter gets its bauxite from the Severouralskoye deposit.