United Rusal : RUSAL invests RUB 250 mln in production of an innovative material for the cable industry

Moscow, 18 January 2018 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL), a leading global aluminium producer, is mastering a new product at its Achinsk Alumina Refinery - fine precipitated aluminium hydroxide (FPAH). Company's proprietary technology allows to keep the production cost of the FPAH below the world's average price for this product. The total amount of investment in construction of the pilot plant will amount to RUB 250 mln.

Fine precipitated aluminium hydroxide is a powder with particles of less than 3 μm, which is a hundred times thinner than a human hair. Its physical and chemical properties make this material an excellent fire retardant. Therefore, aluminium hydroxide is widely used in the production of silicate wool for cables for the nuclear, ship building, aviation, and automotive industries. It is also used in the production of paints and lacquers, high-quality paper, and polymer compounds for various applications.

Global consumption of FPAH exceeds 800,000 tpa and grows by more than 4% per year. Russia's FPAH demand exceeds 30,000 tpa.

'Given the necessity of import substitution in high-tech industries, the development of a domestic technology for FPAH production appears to be especially important', noted Viktor Mann, RUSAL's Chief Technical Officer. 'This objective has been successfully delivered by specialists of our Engineering and Technology Centre, and now this solution is RUSAL's know-how. Furthermore, a low production cost of the material will ensure that it is competitive not only in the Russian market'.

In 2017, specialists produced several hundred kilogrammes of FPAH at a large laboratory-scale plant at the Achinsk Alumina Refinery. A pilot batch of powder has been tested by cable producers, which confirmed the declared parameters.

Design of the FPAH pilot plant will commence in 2018. The project will enhance the Achinsk site with a cutting-edge facility with initial expandable capacity of 2,500 tonnes and create new jobs for the area.