Russia's Rusal plans to boost Armenal foil output

Rusal, the Russian aluminium producer, is planning to increase the annual ouptut of the Armenal foil mill in Armenia to 40,000 tonnes.

It just finished a 70 mln usd, two-year modernisation project for the plant, which is designed to produce 25,000 tonnes a year.

Armenal is expected to operate at full capacity in the middle of next year, said a statement from Rusal, which is merging with fellow Russian Sual International and Switzerland's Glencore International AG.

'Armenal is the only aluminium foil production facility in the Caucasus and Central Asia and has already received enough orders to operate at full capacity,' said Alexander Burdin, the deputy chief executive for Rusal's packaging business.

'Rusal is considering an opportunity to expand the plant's production capacity up to 40,000 tonnes of product per year,' he added.

Armenal, once fully operational, will capture a 12 pct share of the CIS market for foil products, which it will supply to the US and the rest of Europe.

The three-way union of the companies to create the world's largest aluminium group is expected to be completed early next year, subject to regulatory approvals.