Rusal to invest $16 bln in development over next five years

MOSCOW, October 24 (RIA Novosti) - The aluminum giant formed through a merger of Russian companies RusAl and SUAL [RTS: SUAL] with Switzerland's Glencore will put $16 billion into its development over the next five years, and will bring its capitalization up to $100 billion, a senior RusAl official said Tuesday.

Alexander Lipschitz, director for international and special projects at RusAl, the owner of a blocking 66% stake in the United Company Russian Aluminum, said: "Our ambition is to have a capitalization of at least $100 billion, and we plan to invest some $16 billion [in the company's development] - a little over $3 billion a year."

He said the consolidated company, which is the world's largest aluminum producer at the moment, will extend its scope to other sectors, including metals and energy.

Under a deal signed two weeks ago, SUAL will hold 22% in the merger, and Glencore the remaining 12%. The aluminum giant plans to hold its IPO in 18 months' time.