Russian aluminum plans for fundamental transformation – Eurasia Review
Russian Aluminum (RusAl), a leading aluminum producer, announces that it is pursuing a spin-off of its higher carbon assets to unlock value through the creation of two companies with separate strategies. The board of directors approved a management proposal, which is in line with the ambitious environmental goals and the company’s strategy to achieve carbon neutrality by 2050.
The proposed transformation would result in two companies focusing on executing their own independent strategies to generate value for stakeholders: it would focus on strengthening its position as the leading low-carbon aluminum producer. and the new enterprise would focus on the development of the domestic market and its growth potential.
With this transformation plan, it has taken another major step to reaffirm its intention to remain the largest producer of low-carbon aluminum with its market-leading brand ALLOW. Through its intensive use of clean energy sources such as hydropower, the company is committed to supplying the aluminum market with the lowest possible carbon footprint. The company will be better positioned to reach its full potential as a sustainable business by developing revolutionary inert anode technology that delivers on the promise of carbon-free aluminum production.
In the logical continuation of this transformation, the management of the company proposed to change the name of the company to “AL +”. The Board of Directors has placed this item on the agenda of the annual general meeting of shareholders of the company, scheduled for June 24, 2021. The new AL + brand represents the fundamental values of the company and the progress of environmental management. It reflects the company’s position as one of the world’s largest manufacturers of sustainable, value-added and low-carbon aluminum, underscoring its dynamic, innovative, international and technological focus.
Following the proposed split, the newly formed company would focus on promising growth markets and implement a long-term modernization program, as announced in April. The new company is expected to include alumina refineries located in Russia (Achinsk, Bogoslovsk, Urals and Pikalevo) and smelters in Bratsk, Irkutsk, Novokuznetsk, Volgograd and Kandalaksha. As part of the aforementioned long-term environmental modernization program, the new company would replace most of its currently installed electrolysis lines with new ones using the most up-to-date precooked smelting technology.
The proposed transformation requires consultation with the company’s stakeholders and may be subject to the approval of regulatory authorities, lenders, shareholders and other third parties.
Bernard Zonneveld, Chairman of the Board of Directors of RUSAL, said: “As the sustainability movement accelerates around the world, the split project we are announcing today would represent the next chapter of our journey and is firmly in the interest of both companies; allowing AL + to focus on its Net Zero priorities, further promoting its leading low-carbon brand ALLOW, while the newly formed company would focus on implementing a long-term modernization program. The proposed transformation would allow both companies to unlock their full potential. I believe the proposed segregation of assets with different carbon footprints will open the door to future creation of shareholder value and accelerate growth opportunities. ”
Evgenii Nikitin, Managing Director of RUSAL, said: “Today marks a bold new era for our company which, over the past 20 years, has come a long way from being a primary aluminum producer to a preferred supplier of high quality durable VAP products. for major global brands. This transformation represents our commitment to our core values and progress in environmental stewardship as we continue our journey as a producer of clean, low-carbon and transparent aluminum and VAPs. Sustainable growth is the only possible basis for the development of industries around the world and we will continue to implement our ambitious ESG strategy. ”
About RUSAL: Russian Aluminum is the leader of the global aluminum industry and one of the leading producers of low carbon aluminum. It has offices operating in 20 countries around the world and on five continents.