Moscow, 5 April 2017 – UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, and Runaya Metsource LLP, a company promoted by principal shareholders of Vedanta, have signed an agreement to create a joint venture on an equal basis in India (JV).
The JV will set up a world class facility which specializes in the production of high technology aluminium pastes and powders with a wide range of high end applications, including innovative industries such as additive technologies and solar energy.
India has ambitious growth plans in these sectors and Rusal shall bring in its rich experience of being a high quality producer of these products.
The project capacity of the JV will be 10ktpa. The project will begin this year and commence commercial production in 2018.
The project will be divided into several stages; the first stage includes the JV registration, a selection of a construction site and the design project of a plant. The JV will sell its products primarily in the Indian, South-East Asian and Middle Eastern markets where demand is growing rapidly.
“RUSAL’s strategic priority includes the increase in production and sales of high value added products, including the creation of joint ventures. A combination of RUSAL’s long lasting experience in production of aluminium powders and pastes as well as Runaya Metsource’s strong positions as a local player create solid competitive advantages for the JV and is an excellent foundation to penetrate the market,” commented Alexey Arnautov, RUSAL’s director for new projects.
Naivedya Agarwal, CEO Runaya Metsource and designate Managing Director of the Joint Venture, stated:
“Runaya’s strategy is to enter businesses focusing broadly on material sciences and manufacture products with high technology applications through alliances and partnerships with global leaders. I’m delighted with this joint venture with Rusal, which will innovate and produce high end aluminum based products for fast growing global and regional markets.”