RUSAL to raise 2007 foil output by 66 pct

YEREVAN, July 11 - United Company RUSAL, the world's largest aluminium producer, plans to raise aluminium foil output by 66 percent this year as its refurbished plant in Armenia reaches full capacity, a senior company official said. Alexander Burdin, director of RUSAL's packaging division, said the company would produce 85,000 tonnes of aluminium foil at its three plants this year. By 2012 it plans to raise capacity to more than 100,000 tonnes a year. "If we want to grow, of course we will have to look at different options to acquire plants, or build new capacity," Burdin told reporters during a visit to RUSAL's Armenal foil plant in the Caucasus republic. RUSAL's packaging division posted sales revenues of $240 million in 2006. Rusal's Sayanal plant plans to produce 44,000 tonnes of foil this year, Armenal 25,000 tonnes and Urals Foil 16,000 tonnes this year. RUSAL aims to supply 50 percent of Russia's aluminium foil demand this year up from 47 percent in 2006, Burdin said. Its global share will rise to 2.4 percent from 1.6 percent last year. The share of the European market will rise to 9 percent from 6 percent. "The packaging division's priority for growth is the Russian and CIS (Commonwealth of Independent States of the former Soviet Union) market," Burdin said. He said the company supplies most major food and drink manufacturers with a presence in Russia, including Kraft Foods and Nestle . The company will invest $9 million in its three foil plants this year. Russia's foil market is growing at a rate of 9 percent per year, compared to global growth of 2.5 percent, Burdin said. Russia's foil consumption will rise to 29,000 tonnes per year by 2011 from 19,000 last year and the world's consumption will rise to 3.16 million from 2.72 milion, he said. UC RUSAL, owned by Russian billionaire Oleg Deripaska, produces an eighth of the world's aluminium. The company is planning a share listing in London that some sources have said could raise as much as $9 billion Armenal reopened in October after a $70 million upgrade carried out by German firm Achenbach. The plant has capacity to produce 25,000 tonnes a year, or 12 percent of the aluminium foil products made in the CIS.