UC RUSAL and GAZ Group sign special machinery supply contract

Moscow, 25 October 2011 – UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), world’s largest aluminium producer, and GAZ Group, Russia’s largest automotive engineering holding, announce signing a supply contract for special machinery produced by GAZ Group in the framework of a joint project with RUSAL targeting aluminium production needs.

In 2012 RUSAL plans to acquire from GAZ Group 11 pot crust breaking machines, 18 alumina loading machines, and 12 metal handling trucks. These vehicles were highly esteemed during a recent testing at RUSAL’s facilities. The contract amounts to USD 4 million. Diesel vehicles are to be produced by Bryansk Arsenal Plant and Tver Excavator Plant (TVEX).

Apart from that, in 2012 RUSAL and GAZ Group will develop and produce the prototype machines for alumina distribution, anode paste loading, anode cutting, metal tapping without a crane and pot cleaning. According to RUSAL’s estimates, vehicle park costs will reduce by 25% after introduction of the new jointly produced vehicles.

The current Russian-manufactured special diesel vehicles park is outdated. Most of the vehicles were produced more than 40 years ago. They have a low structural reliability and miss contemporary working conditions requirements. The imported vehicles have several disadvantages such as high purchase prices and maintenance costs, problems with spare parts accessibility.

The goal of the joint project with GAZ Group is to create special diesel operational vehicles comparable with imported vehicles by maintainability and with Russian-manufactured vehicles by maintenance costs and prices. The vehicles will be operating at the Novokuznetsk, Krasnoyarsk, Irkutsk, Sayanogorsk and Bratsk aluminium smelters.

‘This joint special vehicles project with GAZ marks the beginning of a long-running cooperation which will result in RUSAL receiving reliable vehicles that meet all the requirements and that are provided with after-sales service. At the same time, GAZ, by launching the production, will get access to a new market niche with a committed demand,’ UC RUSAL’s Director for Production Development Dmitriy Bondarenko commented on the signing of the contract.

‘By launching the joint project with RUSAL, we enter a new market segment – production of special vehicles for the aluminium industry. All the special vehicles we have developed for RUSAL are tailored for heavy duty in compliance with the aluminium industry specifics. We are confident that the joint project will enable us to develop our expertise in this segment and provide RUSAL with reliable and multifunctional vehicles at competitive prices,’ said GAZ Group Director of Special Vehicles Division Sergey Serebryakov.