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RusAl buys stake in Italy’s EurAllumina
Russian Aluminum (RusAl) said it had purchased a 56.2 percent stake in Italy’s alumina plant EurAllumina from Australia's Rio Tinto. This means that the whole of EurAllumina will be controlled by Russian Aluminum as the Swiss company Glencore, which has the other 43.8 percent in EurAllumina, is part of Russian Aluminum. The value of the transaction has not been revealed.
EurAllumina is located on the Italian island of Sardinia. The plant, opened in 1973, produces alumina and hydrate. It processes over 2 million tonnes of bauxites a year. EurAllumina’s annual production capacity is more than 1 million tonnes of alumina.
Russian Aluminum (RusAl), Siberian-Ural Aluminum Company (SUAL) and the Swiss mining company Glencore International AG signed a merger agreement on 9 October.
The merger will be completed by 1 April 2007. RusAl will have 66 percent in the merged group, SUAL will have 22 percent, and Glencore will control the rest. The new company will be called Russian Aluminum. RusAl will have six seats on the new company’s Board of Directors, SUAL will have two seats, and Glencore will have one seat. There will also be two independent directors. The Board will be chaired by SUAL President Brian Gilbertson.
The new group will account for one eighth of global alumina production. Its value is estimated at between $25 billion and $30 billion, and revenue is expected to be $10 billion. The annual capacity will reach 5 million tonnes of primary aluminum over the first 3.5 years of operation.
RusAl is the world’s largest aluminum producer, selling its products to clients in 50 countries worldwide. Russian Aluminum operates in nine regions of the Russian Federation and 13 countries. It accounts for 75 percent of aluminum production in Russia and for 10 percent of the global market.
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