UC RUSAL to limit capacity increases - CEO

* CEO says to bring 100,000 T capacity on stream in 2010

* New smelters to add 332,000 T capacity in H2 2011

* Deripaska says plans to remain chief executive

By Aleksandras Budrys

MOSCOW, April 21 (Reuters) - UC RUSAL , the world's largest aluminium producer, will limit capacity increases to the 100,000 tonnes planned for 2010 and a further 332,000 tonnes set for next year, the firm's biggest shareholder said on Wednesday.

RUSAL plans to launch the first phase of its Boguchany plant in September 2011, adding 186,000 tonnes of new capacity, before launching its Taishet plant a month later. The first phase of the Taishet smelter will have capacity of 146,000 tonnes a year.

This will follow the 100,000 tonnes of capacity that RUSAL is bringing back on stream in the first half of 2010, said Oleg Deripaska, UC RUSAL's chief executive and largest shareholder.

"We do not plan to exceed those levels,” Deripaska told a news conference. But he added that the company intended to increase production in line with the capacity rise.

Oleg Muhamedshin, RUSAL's director for capital markets told the conference that RUSAL was in a “very advanced stage” of negotiations with the state-run VEB bank to organise a project finance facility for the Boguchany smelter and hydropower plant.

RUSAL started building the $2.3 billion Boguchany smelter, which is expected eventually to produce 1 million tonnes of the metal per year, in partnership with state-controlled hydroelectric company RusHydro  in 2007.

Mukhamedshin said RUSAL creditors had agreed it could spend some of its cashflow to finance the project to build Taishet.

"But we also continue negotiations with a number of financial institutions here in Russia to support the Taishet smelter as well,” Mukhamedshin said.

Deripaska said Taishet could also eventually produce 1 million tonnes of aluminium a year.

UC RUSAL produced about 3.9 million tonnes of aluminium last year, or approximately 10 percent of global production. It plans to boost output by 3 percent this year as the market improves after a slump that prompted it to cut output in 2009.

UC RUSAL has capacity to produce 4.6 million tonnes a year of aluminium, which is used in packaging, construction and cars, not including the new capacity that will be added when the Boguchany and Taishet smelters in eastern Siberia come on stream next year.

UC RUSAL raised $2.2 billion in January when it became the first non-Asian company to list in Hong Kong. This followed its completion of the biggest ever private sector Russian debt restructuring.

Deripaska said RUSAL aimed to increase its presence on the growing Asian markets, including those of China, India, as well as Japan and South Korea.

For this purpose it intends to register its products on the Shanghai exchange and to negotiate supplying to consumers in those regions more alloys in the shape they require, as well as value-added products -- billets, wire rods and slabs.

Deripaska, who appointed himself chief executive to see the company through the debt restructuring and IPO, said he planned to remain in charge of the company for the foreseeable future.

(Reporting by Aleksandras Budrys, editing by Will Waterman)