Pan Armenian News

RUSAL ATTRACTED 46.6 MILLION EURO EXPORT CREDIT FOR MODERNIZATION OF ARMENAL
FOIL PLANT

11.04.2005 03:44

/PanARMENIAN.Net/ RUSAL, one of the world’s leaders in producing primary
aluminum has attracted a 46.6 million euro credit from Bayerische
Landesbank. The credit is provided with the guarantee of EULER HERMES, the
German Agency of Export Crediting and is destined for financing a
large-scale program of modernization of ARMENAL foil plant, Firm Secret
project reports. The modernization program at RUSAL’s ARMENAL foil mill
facility in Armenia, started in October’2004 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. The credit
will completely cover the cost of equipment and services essential for the
program implementation and will be provided via two tranches. The first 6.99
million euro commercial tranche will be provided by BayernLB with term of
3.5 years, while the second one will make 39.61 and will be allocated with
the guarantee of the German Agency of Export Crediting with the term of 8.5
years. Vladislav Soloviov, Chief Financial Officer noted, `The credit
attracted by RUSAL will not only contribute to the development of company’s
activities in the region but will also play a key role for the Armenian
economy. BayernLB is a pioneer to have credited business in the republic and
we hope that other representatives of international association will follow
its example.’ Minister of Trade and Economic Development of Armenia Karen
Chshmaritian said, `The modernization of ARMENAL has become the one of the
major investment programs to be carried out in the Armenian economy. Thanks
to RUSAL Armenia will have a super modern foil plant and the BayernLB’s
credit received with the assistance of the Russian company will considerably
improve the investment climate in the republic.’ The first stage of the
modernization program is to be finished in autumn 2005. 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.