MOSCOW, May 24, 2017 – UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, announces the achievement of the agreement with the Governor of Volgograd region to create a production cluster.
The working meeting was attended by the President of UC RUSAL, Oleg Deripaska, CEO, Vladislav Soloviov, Presidential Plenipotentiary Envoy in the Southern Federal District, Vladimir Ustinov, and the Governor of the Volgograd region, Andrey Bocharov.
The creation of the Volgograd Technology Valley became possible due to earlier agreements with the regional administration and the electricity supplier to develop the production site of the Volgograd Aluminium Smelter (VgAZ), where it is planned to restart the reduction capacities, and in 2018 the production of the baked anodes will be organised and the production of aluminium colouring agents will be restored.
The concept of the Volgograd Technology Valley project is the creation of new processing plants in the immediate vicinity of the producer of the primary aluminium with the possibility of direct supply of molten metal. A similar concept is also planned to be implemented with the participation of UC RUSAL in Khakasia and the Krasnoyarsk territory.
High value-added products (extrusion) and final products will be produced within the technology valley of Volgograd: construction materials, automotive components, structures and construction based on aluminium extrusion. It is estimated that 2 to 3 thousand jobs will be created due to the launching of the Volgograd Technology Valley. About RUR 9.6 bln will be invested in the production of primary aluminium and semi-finished products on VgAZ only, and about RUR 2.7 bln additionally in the production of high added value products in the valley. A preliminary assessment of investment in the production of final products within the valley is also being performed. Volgograd, situated at 1,700 km from the St. Petersburg port and 700 km from the Novorossiysk port with direct access to the European markets and the Persian Gulf, is conveniently located in terms of logistics of export-oriented production.
The feasibility study of the creation of a special economic zone (SEZ) in the region to reduce risks for future investors through a special business regime is being prepared.
'High interest in the creation of another technology valley suggests the sustainability of development of new processing industries in this format. The opening of production sites in the Volgograd Technological Valley will contribute to the growth of tax deductions and the social and economic development of the region', noted Vladislav Soloviov, CEO of UC RUSAL.