Russia's newly-created aluminum giant United Company RusAl said Tuesday it would set up a joint venture with France's Areva to produce electrical equipment for aluminum enterprises.
United Company RusAl, established in March through a merger of Russian aluminum giants RusAl and SUAL and Swiss Glencore's alumina assets, signed an agreement Tuesday with Areva to establish a joint venture on a parity basis to produce electricity transmission and distribution equipment for aluminum smelters, RusAl said in a statement. The JV, to be created in the Urals city of Yekaterinburg on the premises of the Russian Power Engineering Company, is expected to produce equipment over a period of five years worth $500 million for RusAl's program to modernize and expand existing facilities, and projects to put the company's new aluminum capacities into operation, the statement said.
RusAl's requirements for electrical equipment up to 2011, including energy-related projects and aluminum smelters under construction, are expected to reach about $1 billion, the statement said. The company has been successfully cooperating for over two years with Areva, which offers its customers technological solutions for CO2-free power generation and electricity transmission and distribution, the statement said. (rian.ru)