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Rusal to open foil plant

The €70m refurbishment of its Armenal plant in Armenia highlights the company’s growing focus on international markets, with the plants location in particular helping to increase its ability to supply growing markets.

The firm which is currently the third largest producer of aluminium in the world, account for 30 per cent of the aluminium foil market in Russia, as well as supplying the product in the wider Commonwealth of Independent States (CIS).

As well as helping to push its dominance in markets in Russia and the CIS, following the plants switch to full production in 2007, the company will look to push the product further into markets in America and Western Europe.

Alexander Burdin, director of Rusal’s packaging division revealed that the investment came as part of plans to improve efficiency in its Armenal plant, which had simply not been cost effective in terms of foil production.

“A financial audit determined that the plant had low profitability because the household foil being produced by ARMENAL had a very high cost,” said Burdin.

He added that the “Implementation of the modernisation programme has enabled ARMENAL to become one of the most advanced and environmentally friendly foil mills in the world.”

When working at full capacity the mill is expected to amount for 12 per cent of the entire foil production in CIS states with the majority heading to markets throughout Europe and the US.

The refurbishment which was undertaken by German company Achenbach over the space of 23 months, centred on improving both the plants environmental and economic output by implementing a non-waste process cycle.

Rusal also introduced greater monitoring capabilities by including tools designed to help monitor every stage of production, while also removing the need for ingots and other moulding techniques.

Burdin added that by its full opening in 2007, “RUSAL Armenal will produce 25,000 tons of foil per year, of which 18,000 tons will be a thin 6-9 micron foil, which is the most popular product in Russia and abroad.”

As well as improving its global portfolio, the company believes that its domestic production will also benefit from the investment.

“The implementation of our strategic goals benefits the economies of both Armenia and Russia as we improve efficiency and increase productivity,” said Burdin.

He added that with Rusal already considering expanding the plants capabilities to around 40,000 tons of foil a year, it is likely that “ARMENAL will become a significant player in the global foil market”.