From the Wires
Basic Element Companies Expand Partnership with Norinco Corporation
Apr. 29, 2012 05:15 AM
Moscow, Apr 29, 2012 - (ACN Newswire) - Oleg Deripaska, CEO of Basic Element and UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX-RTS: RUALR) and President of En+ Group, and Zhang Guoqing, President of China North Industries Corporation, signed a framework agreement on strategic cooperation providing for the joint implementation of projects in the engineering, mining and metal sectors.
Under the auspices of the agreement Basic Element and NORINCO plan to boost the value of their economic and trade cooperation to over US$1 billion within three years of 1 January 2012.
In particular, UC RUSAL has undertaken to expand its export of aluminum products to China through sales to North United Aluminum (Shenzhen) Co. Ltd, a joint venture company established by the partners in Chinaon the basis of Shenzhen North Investments, a NORINCO subsidiary trading company with 15-year experience in Chinese non-ferrous metals market.
UC RUSAL will also study the feasibility of inviting NORINCO to supply anode production equipment for the Taishet aluminum smelter which is under construction.
En+ Group and NORINCO agreed to discuss NORINCO's participation in a project to create Russia's largest aluminum rolling mill on the basis of the Krasnoyarsk metal plant. In addition, the parties agreed to develop a long-term cooperation mechanism for resource development, including the joint development of nickel, copper and other resources in Russia and abroad.
NORINCO and Russian Machines have undertaken to enhance their cooperationin the field of engineering, in particular through sharing technological developments and their certification. This is expected to lead to a gradual extension of cooperation from the supply of components for railway wagons to the joint design, manufacturing and provision of maintenance services. The agreement also provides for the purchase of up to 15,000 sets of wagon components from NORINCO by Russian Machines.
Oleg Deripaska, CEO of Basic Element and UC RUSAL and President of En+ Group, said: "We are pleased to announce that we've reached a new level of cooperation with NORINCO, not only by means of expanding the scope of our joint projects, but also by investing in high-tech and innovative production which we intend to develop jointly. This agreement represents another step forward in the development of our economic relations with China, one of the most strategically important markets for Russia. Sino-Russian trade turnover is already worth over US$80 billion. I am sure our newprojects will help this figure to grow further."
Zhang Guoqing, President of China North Industries Corporation, said: "We are delighted to strengthen our partnership with Basic Element, one Russia's leading business groups. Sino-Russian cooperation has a great future: not only are we neighbors, we are connected by a long history of relations based on mutual understanding and respect. I believe that our projects, in sectors that are important for both countries' industries, will provide a solid foundation for the further development of mutually beneficial partnerships between our two countries."
About Basic Element
Basic Element (www.basel.com) is one of the Russia's largest and most dynamic diversified business groups. Basic Element's companies are controlled by or are within the scope of Oleg Deripaska business interests. Basic Element through its affiliates owns significant stakes in and operates dozens of companies operating in many segments: Energy, Manufacturing, Financial Services, Construction, Aviation, Agriculture and others. Over 250,000 people work at more then 100 Group's companies in Russia, the CIS, Africa, Australia, Asia, Europe and Latin America. Many of them play key roles in their respective market segments in Russia and internationally, including En+ Group, GAZ Group, Glavstroy, Basel Aero and others.
About En+ Group
En+ Group (www.enplus.ru) is a leading Russian diversified mining, metals and energy group. En+ Group holds a 47.41% stake inthe world's largest aluminium producer UC RUSAL, owns Russia's largest independent power producer EuroSibEnergo and one of the leading suppliers of ferromolybdenum to the global market SMR, significant coal assets and logistics business. En+ Group'scompanies project pipeline includes R&D on small-scale nuclear power, a JV with China Yangtze Power Co. to explore potential for sustainable new hydro power in Siberia, projects in iron ore, gold as well as aluminium downstream. The core base of En+'s businesses is located in Eastern Siberia - close to fast growing Asian markets.
About Russian Machines
Russian Machines is a major Russian diversified corporation, a part of Basic Element Company. It comprises industrial and engineering assets in such industries as automotive OEM, automotive components, rail industry, aircraft OEM, military vehicles, road construction machinery. Russian Machines enterprises are located in 14 regions of Russia. Corporation headcount is over 75,000. Russian Machines official website: www.rm.ru
UC RUSAL (www.rusal.com) is the world's largest producer of aluminium, in 2011 accounting for approximately 9% and 9% of global production of aluminium and alumina, respectively. UC RUSAL employs about 74,000 people in 19 countries, across 5 continents. UC RUSAL markets and sells its products primarily in the European, Japanese, Korean, Chinese, South East Asian and North American markets. UC RUSAL's ordinary shares are listed on The Stock Exchange of Hong Kong Limited (Stock code: 486), global depositary shares representing UC RUSAL's ordinary shares are listed on the professional compartment of Euronext Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs), and Russian depositary receipts that are issued on common shares of the Company are listed on MICEX-RTS (RUALR) stock exchange.
China North Industries Corporation (NORINCO) (http://www.norinco.com) is an enterprise group engaged in both products and capital operation, integrated with R&D, manufacturing, marketing, and services. NORINCO mainly deals with defense products, petroleum & mineral resources development, international engineering contracting, optronic products, civilian explosives & chemical products, sports arms & equipment, vehicles and logistics operation, etc.
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Source: UC RUSAL
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