Rusal signs major deal with Chinese arms maker
Moscow: Russia`s UC Rusal, the world`s
biggest aluminium producer, will supply Chinese defence
industry firm Norinco with 1.68 million tonnes of aluminium
from 2010 to 2016, the two companies said on Monday.
The value of the contract with the China North
Industries Corporation (Norinco) was not made public in their
statement. Rusal said sales to China were set to account for
five percent of its sales in 2009 and it hoped 10
percent of its revenue by 2015.
"The metal will be shipped to Norinco from UC Rusal`s
Siberian smelters, which are favourably located in proximity
to UC Rusal`s Chinese clients," the joint statement said.
The deal is consistent with Rusal`s goal of
increasing its presence in China`s rapidly growing economy,
chief executive Artem Volonyets said in the statement.
"We consider China a long-term driver for aluminium
demand due to its rapid pace of urbanisation and
industrialisation," he said.
Rusal, a privately held company run by billionaire
Oleg Deripaska, hopes to restructure several billion dollars
worth of debt this month and conduct an initial public
offering (IPO) by December, according to media reports.
The global economic crisis and a steep drop in the
price of metals since last year has left Rusal with an
estimated debt of USD 14 billion to foreign creditor banks.