Russian aluminium giant to upgrade Armenian foil plant

Mediamax
11 Apr 05

YEREVAN

With the aim of financing the upgrading of the Armenal foil plant, the
Rusal [Russian Aluminium] company has acquired an export credit of
46.6m euros from the German bank Bayerische Landesbank (BayernLB) with
guarantees from the German export credit agency Euler Hermes.

The loan, extended in two parts, will fully cover capital equipment
costs and service fees which are needed to implement the modernization
programme, the press service of Rusal told Mediamax today.

Rusal signed an agreement in October in 2004 with the German-based
Achenbach company to commence Armenal’s modernization, aimed at
creating a full cycle production system and extending the plant’s
product assortment. The cost of the modernization programme totals 70m
dollars.

The first stage of the modernization project is expected to be
completed in the autumn of 2005. As a result, the modernized plant’s
production capacity will reach 25,000 tonnes of foil annually.

Armenal has been founded in 2000 on the basis of the Kanaker foil
plant as a joint venture of Rusal and the Armenian government. The
plant belongs fully to Rusal beginning from January 2003.