01/12/2016
UC RUSAL, one of the leading aluminium producers in the world, and manufacturer of cable product ‘OKP ‘ELKA-Kabel’’, signed a shareholders agreement to create a joint company for the production of cable and wire products called OOO ‘Bogoslovsk Cable Plant.
The partners will get 50% of the capital from the joint company. The total amount of investment in the project is around USD 19 mln. The production will be organised at the industrial site of the Bogoslovsk aluminium smelter (BAZ). The amount of production at full production capacity could be up to 4,400 tonnes of aluminium product per year in terms of the volume of metal. The produced cable and wire products will be supplied to the Russian and CIS markets, including oil-submersible cables, flexible cables, wires for non-stationary laying and self-supporting insulated wires. Development and production of other types of product is being scheduled for down the line.
“The organisation of a joint company will allow our companies to establish their position in one of the key and rapidly growing areas of aluminium consumption, cable and wire products”, stated Aleksey Arnautov, Director of New Projects at RUSAL. “The new production will address socio-economic problems of the single-industry city. Launching this production at the company will generate jobs for over 100 citizens of Krasnoturinsk.
The launch of joint company OOO ‘Bogoslovsk cable factory’ is planned for the end of 2016. At the moment, the foundations for the equipment are being made on site, where they will be installed, and then preparations for the production of the first batch will begin.