Russia forms world's largest aluminium producer

MOSCOW, March 27 (Reuters) - Russia's aluminium billionaires, who have created the world's largest producer of the metal, said on Tuesday they would float the firm within three years as the country enhances its presence on global resources markets.

United Company RUSAL will produce one-eighth of the world's aluminium, surpassing Alcoa Inc. and Alcan Inc., by combining RUSAL, smaller Russian rival SUAL and assets of Swiss-based commodities trader Glencore. Annual sales will be around $12 billion.

"The deal is a proactive response to several significant industry trends: dynamic growth, competition to secure access to energy and raw material resources and active consolidation," said Alexander Bulygin, chief executive of the new company.

Bulygin told Reuters the company would invest between $2.5 billion and $3 billion annually starting this year on various projects.

RUSAL, owned by billionaire Oleg Deripaska, will own 66 percent of the new group, which will have capacity to produce about 4 million tonnes of aluminium and 11 million tonnes of alumina, the raw material for the metal. SUAL will own 22 percent and Glencore 12 percent.

Alcoa, previously the world's biggest primary aluminium producer, last year produced 3.55 million tonnes of the metal used in cars, drinks cans and cooking foil. Canada's Alcan produced 3.4 million tonnes.