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Russia's Rusal, China's Shandong to study aluminium joint venture
Edited by : AL CIRCLE
2 min read
Rusal has signed a memorandum of understanding with Shandong Xinfa Group, one of China's largest private aluminium companies, detailing the study of future possible cooperation areas, including joint ventures in the aluminium industry, the Russian producer said Thursday.
Rusal and Shandong Xinfa have agreed to establish a joint work group over the next three months from the date of signing to study potential areas of cooperation. The parties will then examine the proposals from the work group until June 30, 2013, to identify cooperation projects which offer the greatest potential.
Preliminary examined opportunities between Rusal and Shandong Xinfa include the creation of Russian-based joint ventures in aluminium smelting, and joint alumina and bauxite projects, including ones in third countries, the company said.
The MOU envisages joint efforts to secure investment for the future projects from Chinese lenders, Rusal said, adding that the legal detail of any future cooperation is still subject to further, separate discussion.
"Volatility in the metal markets and growing global demand for aluminium has caused production costs and energy prices to rise. China as one of the world's aluminium industry drivers has therefore been forced to search for ways to transfer primary aluminium production abroad," said Rusal CEO Oleg Deripaska in a statement.
"Siberian regions of Russia are an obvious top pick not only because of its top-line aluminium smelting greenfields but the entire industrial clusters. We are ready to undertake all efforts to develop the Sino-Russian economic cooperation, favorable to both countries," Deripaska added.
Joint projects in aluminium smelting in the Russian Federation and further export of aluminium to China have been discussed within the framework of the 16th meeting of Joint Commission for the Regular Meetings of Heads of Government and Sino-Russian Energy Dialogue, in the context of greater energy efficiency and rational industry development goals, Rusal said.
Rusal and Shandong Xinfa have agreed to establish a joint work group over the next three months from the date of signing to study potential areas of cooperation. The parties will then examine the proposals from the work group until June 30, 2013, to identify cooperation projects which offer the greatest potential.
Preliminary examined opportunities between Rusal and Shandong Xinfa include the creation of Russian-based joint ventures in aluminium smelting, and joint alumina and bauxite projects, including ones in third countries, the company said.
The MOU envisages joint efforts to secure investment for the future projects from Chinese lenders, Rusal said, adding that the legal detail of any future cooperation is still subject to further, separate discussion.
"Volatility in the metal markets and growing global demand for aluminium has caused production costs and energy prices to rise. China as one of the world's aluminium industry drivers has therefore been forced to search for ways to transfer primary aluminium production abroad," said Rusal CEO Oleg Deripaska in a statement.
"Siberian regions of Russia are an obvious top pick not only because of its top-line aluminium smelting greenfields but the entire industrial clusters. We are ready to undertake all efforts to develop the Sino-Russian economic cooperation, favorable to both countries," Deripaska added.
Joint projects in aluminium smelting in the Russian Federation and further export of aluminium to China have been discussed within the framework of the 16th meeting of Joint Commission for the Regular Meetings of Heads of Government and Sino-Russian Energy Dialogue, in the context of greater energy efficiency and rational industry development goals, Rusal said.
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