Russia`s second-largest aluminium producer OAO SUAL, which received regulatory approval last week for its three-way merger with OAO Rusal and Glencore International AG`s alumina assets, said that its output increased 1.4% in 2006.
The rise in aluminium metal production to 1.06 Mt came on the back of a 0.9% rise in alumina production to 2.31 Mt and a 6.9% rise in the amount of the raw material bauxite mined to 5.78 Mt.
Sual said in a statement that stable production at its Middle Timan bauxite mine in northern Russia and North Ural bauxite mine were behind the increase in production.
Silicon production, however, was down 6.1% on the back of more flexible tariff agreements and competition from neighbouring countries.
"The decrease in production is a result of deliveries of Chinese silicon into Russia following abolishment of protective import tariff as well as dramatic energy tariff growth in Ukraine, which forced the company to stop silicon production at ZALK".
On the consumer side, output of rolled and semi-finished products exceeded the levels of previous year by 21.3% thanks to the implementation of an investment programme, which included launch of new casting facilities and modernisation of mill and extrusion production.
The company also pointed to an integrated program of production development and successful market promotion, which helped to increase the volumes of foil and aluminium strip by 3.9% as compared with 2005.
The combined entity `United Group Rusal` will be the largest aluminium producer in the world accounting for approximately 12.5% of global aluminium with 4 Mt/y and 16% of global alumina with 11 Mt/y.
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