UC Rusal says to hike aluminium output in 2010

* UC Rusal says to raise aluminium output by 3 pct in 2010

* Rusal aims to increase alumina output by 7 pct

* Analysts: aluminium consumption to grow 12.6 pct in 2010

HONG KONG, Feb 22 (Reuters) - United Company Rusal Plc , the world's largest aluminium producer, said on Monday it plans to increase aluminium and alumina output in 2010 as economic development in China and India is expected to boost demand for the metal.

A number of experts have forecast considerable growth of the aluminium market in 2010 due to rising demand from the automotive and packaging sectors. Some analysts expect aluminium consumption to grow 12.6 percent in 2010, the company said.

"Positive dynamics are expected to be driven primarily by continued economic development in China and India due to growing urbanization," Tatiana Soina, a director of UC Rusal, said in a statement issued through the Hong Kong stock exchange.

"Demand for aluminium is also expected to be supported by the major developed countries as the global economy revives."

The Russian company said it would increase aluminium production by 3 percent in 2010 as its Siberian plants, as well as facilities at Alscon in Nigeria, KUBAL in Sweden and potline 5 at the Irkutsk Aluminium Smelter (IrkAZ) in Russia reach full capacity.

UC Rusal also aims to increase alumina output by 7 percent in 2010 by stabilising alumina production at Achinsk Alumina Refinery (AGK), Bogoslovsk (BAZ) and the Urals Aluminium Smelters (UAZ) as well as restoring production at the Boksitogorsk Alumina Refinery (BGZ) in Russia and Aughinish Alumina Refinery in Ireland.

Sources had said earlier in February that UC Rusal , may increase output at its mothballed assets in the first quarter of this year. 

PRODUCTION DOWN IN 2009

The world's top aluminium producer said its total aluminium output amounted to 3.9 million tonnes in 2009, a reduction of 11 percent from 2008, while alumina output totaled 7.3 million tonnes in 2009, down 36 percent from 2008.

Bauxite production was reduced by 41 percent to 11.3 million tonnes in 2009 due to weakened demand, while aluminium foil and packaging production volume of about 67.8 thousand tonnes in 2009 remained practically unchanged.

UC Rusal said the global recession had led to an 8.2 percent drop in aluminium demand in 2009, and the average price for aluminium fell 35 percent.

Aluminium producers cut annual production by about 2.4 million tonnes and postponed launching new facilities totaling about 3.5 million tonnes a year. Global aluminium production fell 5.9 percent to 37.8 million tonnes in 2009, the Russian company said.

Shares of UC Rusal, which listed in Hong Kong on Jan 27 after raising about $2.2 billion in an initial public offering, have fallen more than 30 percent from its issue price to close at HK$7.50 on Friday.

(Reporting by Donny Kwok; editing by Ken Wills)