RUSAL raises investments in foil unit to $70 mln

MOSCOW, Oct 8 (Reuters) – Russian top aluminium producer RUSAL will
increase investments in modernisation of its Armenian foil unit,
ARMENAL, to $70 million from previously planned $34 million, RUSAL
said on Friday.

“More sizeable than initially planned the programme will allow RUSAL
ARMENAL to improve the quality of foil products and raise the plant’s
profitability,” A RUSAL statement said.

RUSAL will invest $25 million of its own funds into the Armenian plant
and will take a $45 million long-term loan from a group of German
banks, headed by Bayerische Landesbank.

RUSAL has appointed German firm Achenbach GmbH as contractor to
produce a feasibility study and to implement the modernisation
programme.

The upgrade will permit ARMENAL to produce up to 25,000 tonnes of foil
per year including 18,000 tonnes of expensive thin foil. The first 150
tonnes of foil will be produced by the end of 2005.

ARMENAL produced 9,614 tonnes of foil in the first nine months of
2003. The plant has been idle since November 2003.

10/08/04 09:27 ET

From: Emil Lazarian | Ararat NewsPress