Rusal partners with ELKA-Cable to build cable plant

UC RUSAL, one of the world's largest aluminium producers, and ELKA-Cable, a cable product company, signed a shareholders' agreement to create Bogoslovsk Cable Plant, a jointly owned facility producing cables and wires.

The partners will have an equal number of shares in the joint venture and the total investments are estimated at around USD 19 mln. The new facility will be set up within the site currently occupied by RUSAL's Bogoslovsk aluminium smelter (BAZ). Once the new plant reaches its full capacity, it will be making 4.3 thousand tonnes of aluminium products per year in terms of the metal used, including oil-submersible cables, flexible cables and displaceable wires and self-supporting insulated wires - all these for Russia and the CIS market. In the future, the product range may be expanded.

"This joint venture will enhance our presence in the cable and wire sector, which is among the largest and fast-growing aluminium consumption segments," said Alexey Arnautov, Director for New Projects of UC RUSAL. "The new plant will also have a favourable socio-economic impact on Krasnoturyinks, which is essentially a single-industry town, creating around 100 new jobs".

The launch of the Bogoslovsk Cable Plant is scheduled for late 2016. Currently, equipment foundations are being constructed, to be followed by equipment installation and commissioning.



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