Russian Aluminium, the country's largest aluminium producer, plans to invest $3 million to expand its cathode block facility in northern China, a senior company official said Thursday.
"Output capacity of the projected plant is expected to reach 25,000 (metric) tons of cathode blocks in three years," said Andrey B. Raykov, Deputy General Director of Rusal's Raw Materials Division.
Cathode block is a raw material for making aluminium.
In December, 2005, Rusal bought the privately-run 10,000-ton cathode plant in the nothern Shangxi province and decided to make it a production base with substantial upgrades, Russal officials said.
"Upon completion of first stage of the project in next year, with an investment of $1.5 million, the plant will be able to produce 15,000 tons of cathode blocks," Raykov said, adding that "it will supply cathode blocks to other Rusal plants."
The company will need to buy another Chinese plant, in order to bring the total production capacity to 25,000 tons, as the existing plant is too small, Raykov said.
Rusal is also considering other investment projects in China, he said.
"We are currently in talks with several Chinese companies, including Aluminium Corporation of China Ltd (ACH), about cooperation but have not reached any agreement yet," Raykov said.
Chalco is the largest alumina producer in China.
Rusal is the world's third-largest aluminium producer with an output of 2.7 million tons in 2005.
The company plans to merge with Sual Group, another major Russian aluminium maker and Swiss-based commodity trader Glencore International AG to form the largest aluminium company in the world next year.
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