Armenal 1H Levels Better than Its Nominal Design Capacity

RIA Oreanda, Russia
July 10 2009

Armenal 1H Levels Better than Its Nominal Design Capacity

Moscow. OREANDA-NEWS . On 09 July 2009 UC RUSAL, the worlds largest
aluminium and alumina producer, announced a marked increase in output
from its ARMENAL foil mill, Armenia . In June, the foil mill produced
nearly 2,500 tonnes of foil, a 12% improvement on its nominal design
capacity, taking ARMENALs half-year production to over 10,000 tonnes.

ARMENAL reported a 77% production increase from January to June 2009
compared to H1 2008 and said it expected to see its output double by
the end of this year.

ARMENAL, in parallel with the expansion of output, was making
improvements in practically every technical and economic indicator,
including a 60% reduction in production costs and minimisation of the
rate of rejects due to production defects.

The keys to success for ARMENALs workers were reduced material
consumption rates, firmer process discipline, and a comprehensive
programme implemented to reduce costs and raise the yield ratio, said
ARMENALs Managing Director Sergey Borovik. The yield ratio more than
doubled in only twelve months to 72.4% and we are set to improve that
important performance indicator to 75%.

ARMENAL has enough orders on hand to keep the foil mill running until
the end of this year. Its products are mainly exported to the United
States with the Middle East becoming a rapidly growing market for
them.