RUSAL increases sales to China

UC RUSAL and China North Industries Corporation (NORINCO) announced the signing of a contract for aluminium delivery. Under the contract, UC RUSAL will supply 1,680,000 tonnes of its aluminium to NORINCO between 2010 and 2016. The metal will be shipped to NORINCO from UC RUSAL’s Siberian smelters, which are favorably located in proximity to UC RUSAL’s Chinese clients. The shipments will be made in standard ingots of 15-25kgs/piece. UC RUSAL has a well diversified sales platform covering the United States and Japan and also has a strategic focus on high-growth markets, South East Asia and China in particular. UC RUSAL’s sales to China are expected to represent 5% of its revenue in 2009, and the company aims to increase this to 10% of revenue by 2015. Commenting on the signing of the contract, Artem Volynets, RUSAL’s Director for Corporate Strategy, said: “UC RUSAL is a natural strategic partner for aluminium consumers in China. This agreement represents a significant step towards achieving our strategic objective of increasing exposure to the Chinese market. In addition, it allows our partner, NORINCO, to benefit from UC RUSAL’s key competitive advantages: a sustainable low-cost position and favourable location. We consider China to be a long-term driver for aluminium demand due to its rapid pace of urbanisation and industrialisation and are pleased to continue expanding our mutually beneficial cooperation with Chinese clients.” NORINCO executive Xu Yuping said: “We are excited to begin our collaboration with the global aluminium leader by sealing this mutually beneficial deal. NORINCO believes that our contract with UC RUSAL will help fostering the rapidly growing economic ties between Russia and China strongly encouraged by the leadership of both countries and we look forward to building on this collaboration with our new partner for many years to come.