United Rusal : RUSAL invests $5.6 mln to launch new type of wire rod

Moscow, 14 August 2017 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL/RUALR), a leading global aluminium producer, is pleased to announce it has commissioned for pilot production a complex of furnaces for the hardening of wire rods at the Kandalaksha Aluminium Smelter. The total level of investment into the project was USD 5.6 mln.

The project, launched in March 2016, will enable the production of 6800 tonnes of wire rods from the 6101-T4 alloy per year, whilst also expanding the client base and increasing the competitiveness of RUSAL's products. Consumers of the KAZ hardened wire rods are both domestic and foreign manufacturers of cable products.

The new complex is equipped with four state-of-the-art convection furnaces for hardening, a loading and unloading table, a transborder and two drying chambers. The special feature of the complex is that the rods will be hardened in a basin with water, allowing for a natural aging process. For three days after hardening in the water and drying, the crystal lattice acquires the properties needed for further processing.

Evgeny Nikitin, Head of Aluminium Division at RUSAL, commented: 'The launch of the furnaces at the Kandalaksha smelter to produce a new type of wire rod is part of RUSAL's strategic plan to increase the share of value-added products.'

In March 2017, the Properzi rolling mill was put into pilot operation at KAZ, which allowed for the launch of seven new sizes of wire rod with a range of diameters - 9.5, 12, 14, 15, 19, 23 and 25mm. Until then, the smelter had only produced products of one diameter size - 9mm. The new rolling mill will ensure an output of up to 50,000 tonnes of value-added products a year.