Moscow, 28 February 2012 - UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; MICEX-RTS: RUALR), the world's largest aluminium producer, is pleased to announce the completion of the first stage of its Nadvoitskiy aluminium smelter's (NAZ) modernization and the increase in alloys production due to the smelter's revamping programme. The investments at the first stage of the project amounted to USD 2,3 million.

The installation of new equipment - a 30-tonne-mixer and 2 casting conveyors with total capacity of 14 tonnes per hour - is completed at the NAZ casting complex. The launch of this equipment will enable the smelter to increase its annual alloy production capacity from 15,000 tonnes to 45,000 tonnes. As a result the alloys share in NAZ general production rate will increase up to 60%.

New products will mostly be used for the engineering and automobile manufacturing industries. The smelter in particular will produce A356.2 alloy for wheel disks production. New products will increase the smelter's competitiveness as the special alloys sale price is higher than the primary aluminum's one.  The upgraded casting complex will start production in March.

Alexey Arnautov, Director of RUSAL's Aluminium Division West, commented: "We will keep on implementing the plan to convert the production capacities of the Aluminium Division West to high-value added production. Currently the alloy production rate at NAZ is only 60%, but once the second stage (the modernization of A356.2 alloy T-type ingots casting machine)  is completed, the alloys production share will increase to 80%. The smelter is already producing a standard ingot with a special chemical composition, and following the completion of the second stage 100% of production will be high-value added. Amid today's complicated economic situation the only way to keep competitive is to install new equipment and to upgrade current equipment".