2 November
MOSCOW,
Press Release

World aluminium leader increases sales to China, the world’s key aluminium consumer 

UC RUSAL, the world’s largest producer of aluminium and alumina, and China North Industries Corporation (NORINCO), one of China’s largest diversified corporations, are pleased to announce the signing of a contract for aluminium delivery. Under the contract, UC RUSAL will supply 1,680,000 tonnes of its aluminium to NORINCO between 2010 and 2016.

The metal will be shipped to NORINCO from UC RUSAL’s Siberian smelters, which are favorably located in proximity to UC RUSAL’s Chinese clients. The shipments will be made in standard ingots of 15-25kgs/piece.
 
UC RUSAL has a well diversified sales platform covering the United States and Japan and also has a strategic focus on high-growth markets, South East Asia and China in particular. UC RUSAL’s sales to China are expected to represent 5% of its revenue in 2009, and the company aims to increase this to 10% of revenue by 2015.

Commenting on the signing of the contract, Artem Volynets, RUSAL’s Director for Corporate Strategy, said: “UC RUSAL is a natural strategic partner for aluminium consumers in China. This agreement represents a significant step towards achieving our strategic objective of increasing exposure to the Chinese market. In addition, it allows our partner, NORINCO, to benefit from UC RUSAL’s key competitive advantages: a sustainable low-cost position and favourable location. We consider China to be a long-term driver for aluminium demand due to its rapid pace of urbanisation and industrialisation and are pleased to continue expanding our mutually beneficial cooperation with Chinese clients.”

NORINCO executive Xu Yuping said: “We are excited to begin our collaboration with the global aluminium leader by sealing this mutually beneficial deal.  NORINCO believes that our contract with UC RUSAL will help fostering the rapidly growing economic ties between Russia and China strongly encouraged by the leadership of both countries and we look forward to building on this collaboration with our new partner for many years to come.”

About UC RUSAL

United Company RUSAL (www.rusal.com) is the global leader in the aluminium industry, accounting for approximately 11% and 13% of global production of aluminium and alumina respectively. UC RUSAL employs more than 75,000 people in 19 countries, across 5 continents. UC RUSAL markets and sells its products primarily in the European, Japanese, Korean, South East Asian and North American markets.

About NORINCO

China North Industries Corporation (NORINCO) is an enterprise group engaged in both products and capital operation, integrated with R&D, manufacturing, marketing, and services. NORINCO mainly deals with defense products, overseas resources development, international engineering contracting, optronic products, heavy equipment manufacturing, automobiles and logistics services. NORINCO’s international engineering subsidiary has been registered in the lead of the global 225 largest international engineering contractors for successive years, and many NORINCO’s subsidiaries have also been awarded the national title as advanced enterprise for excellent quality and performance.