ArmenPress
March 3 2005
MODERNIZATION OF ARMENIAN FOIL PLANT AHEAD OF SCHEDULE
YEREVAN, MARCH 3, ARMENPRESS: Georgy Avetikian, the chief manager
of RusAl-ArmenAl foil mill facility, told Armenpress the
modernization of the biggest manufacturer of a wide range of aluminum
foil in the region, started in October 2004 is continuing ahead of
schedule. He said the modernization is aimed both at improving the
quality of its foil products and boosting the plant’s profitability
-in helping the mill to become one of the world leading foil
producers.
German engineering firm Achenbach was selected to execute the
program, scheduled for completion in 18 months at an investment cost
of US $70 million, of which $20 million are the share of RusAl, which
owns 100 percent shares of the mill.
The modernization program, which will also provide for a major
upgrade in foil rolling equipment and also the establishment of a
full production cycle, will lift the plant capacity by 25,000 tons of
foil per year, including 18,000 tons of highly profitable thin foil
in 6-9 micron gauge-increasing ArmenAl’s profitability by 150%. On
completion of the project, RusAl-ArmenAl’s market share of thin foil
production will reach 2.5% by 2008.
Avetikian said some 30-35 percent of $70 million (around $20) will
be paid as wages to Armenian workers and specialists and part of that
money will be used to buy some equipment in Armenia.
The modernization program, apart from a full-scale upgrade in
rolling equipment, includes the installation of new casting machines
and direct rolling mill, as well as an upgrade of hot rolling mills,
to create a full cycle of production. As part of the modernization
program the main foil rolling equipment will be refitted with control
and automatic management systems. High- and low-pressure ancillary
system hydraulics will also be upgraded.
Elaboration of the program will raise the quality and
profitability of RusAl-ArmenAl products and enable the manufacturing
of new product ranges, as well as securing a continuous supply of raw
materials by switching from coil to foil ingot, and set up a
recycling loop for foil scrap.