Economy

Today, the aluminium sector is the leader of Russian industry. It was one of the first to recover from a drop in output at the beginning of 1990s, and its enterprises now operate with maximum efficiency.

In terms of primary aluminium production, Russia is second only to China. It produces 15% of the world’s alumina and 12% of its aluminium. The last five years production volumes have grown at a rate of 1.5 — 3% per year. In terms of light metal exports, Russia is the world leader. Over 80% of the aluminium produced by Russian smelters is exported.

During the restructuring of the Russian economy, aluminium industry facilities constructed in Soviet times remained operational. The readily available and environmentally-friendly electric power from Siberian hydro-power plants significantly contributes to the prosperity of the industry, taking into consideration that the value of power accounts for 25 — 40% of the `winged metal` production costs, while high energy prices cause the shutdown of many smelters in Europe. Russian aluminium smelters fully comply with the standards of the international market. Their production facilities are continuously upgraded and new, effective technologies are implemented.

Aluminium is a high-tech metal. New materials and new equipment based on it are used to improve living conditions and contribute to solving global problems such as energy saving and the protection of the environment. That is why the demand for this «light metal» has recently been growing at the stable rate of 4-7% per year. To keep up with this growth rate, Russian smelters are continuously building up their capacities. According to analysts forecasts, the industry will grow by 11% in three years. Due to this, the industry is constantly creating workplaces for Russian people. Even at present, the number of people working in the aluminium industry, including workers of allied industries and social services, is estimated to be 1 million people. In addition, industry enterprises are in most cases the main source of revenue for local budgets.

It should be noted that the Russian aluminium industry is unique in many respects. It is the only sector of Russian economy which has seen a high level of consolidation. Since 2007, Russia has been the motherland of the largest aluminium company in the world, United Company RUSAL established through the merger of RUSAL, SUAL and the alumina assets of Glencore, a Swiss company. The total capacities of this new leader allow it to produce over 4 million tonnes of aluminium and 11 million tonnes of alumina per year. The scope of the business allows for the reduction of costs and the integration of technologies and experience enables the company to ensure the most effective and innovative production process currently possible.

The Russian aluminium industry is developing rapidly. Today, no other industry implements so many large-scale construction projects. These include the Khakas Aluminium Smelter, which produced its first aluminium in December 2006, (investment into which will total US $750 million), the  construction of an alumina refinery in Komi that requires over US $1 billion of investment, Boguchansk Aluminium Smelter, under construction now, which is part of the Boguchansk Energy and Metal Complex, a joint project between private companies and the state. This rate of development goes some way to demonstrating how strategically important the  aluminium industry is for country’s economy.