OREANDA-NEWS. July 26, 2010. UC RUSAL (HKSE: 486, Euronext: RUSAL/RUAL), the world’s largest aluminium producer, announces changes in its organisational structure. The current Aluminium and Alumina divisions have each been split into Aluminium and Alumina East and West divisions respectively in line with the geographic location of production facilities and their core products and key markets. In addition, two new directorates have been established: the Commercial Directorate and the Production Development Directorate. All these divisions and directorates report to the first deputy CEO of UC RUSAL, Vladislav Soloviev.

Alumina Division East is responsible for managing Russian alumina production assets such as Timan Bauxite, the Achinsk alumina complex, the Boksitogorsk alumina refinery, the North Urals bauxite mine, the Bogoslovsk and Urals aluminium smelters, as well as the Nikolaev alumina refinery in Ukraine. The division is to be headed by Valery Matvienko, the former deputy CEO for operations at MMC Norilsk Nickel OJSC. Alumina Division East will focus on ensuring uninterrupted supply of alumina to the company’s aluminium smelters to meet their specific technological and logistical requirements.

The International Alumina Division (Alumina Division West) has been put in charge of the western bauxite mining and alumina production companies, such as the Friguia Alumina Refinery and Compagnie des Bauxites de Kindia in Guinea, the Bauxite Company of Guyana, Aughinish Alumina in Ireland, Eurallumina in Italy, Alpart and Windalco in Jamaica and Queensland Alumina in Australia. The division is to be headed by Yakov Itskov, who formerly held management positions at Basic Element companies  and RussNeft. One of the key objectives of the International Alumina Division is the production of high quality alumina for the international market, which requires the company to use a flexible approach in working with each of its customers.

This structure mirrors recent changes to  the Aluminium Division has also been split into Aluminium Division East and Aluminium Division West. The production facilities of the new Aluminium Division East, which will be headquartered in Krasnoyarsk, will focus on satisfying the growing demand for UC RUSAL’s products in Asia. In the meantime, the company’s western production facilities, located close to its European customers, will focus on making high value added products including secondary alloys for end consumers in Europe and Russia.

The Commercial Directorate, which is a full-fledged business unit, has been created to centralise and optimise purchasing to meet the demand of the aluminium and alumina divisions, and to manage the sales of secondary products. The Commercial Directorate will also be in charge of the day-to-day management of several production facilities supplying raw materials to the company’s aluminium smelters: Shanxi RUSAL Cathode in China, Polevskoy Cryolite Plant, the South Urals cryolite plant, SUAL-Silicon in Shelekhov and Kamensk-Uralsky, SUAL-Powder Metallurgy in Shelekhov, Krasnoturyinsk and Volgograd, and Yaroslavsky mining and beneficiation plant. The Commercial Directorate is headed by Pavel Ovchinnikov, the former director of UC RUSAL’s Alumina Division.

The Company has also established a Production Development Directorate, whose main function is to create, introduce and develop the production system at all of the company’s production facilities, introducing best practices to increase efficiency and standardising production processes. Dmitry Bondarenko has been appointed Director for Production Development. He has ample experience introducing the Toyota Production System at GAZ Group OJSC.

The goal of the changes in the company’s organisational structure is to increase the efficiency of the business by focusing the company’s subdivisions on very specific and well defined objectives, improving management processes and ensuring the company can quickly respond to changes in the market situation, which should allow it to achieve industry leading  production and financial performance.

Biographies

Valery Matvienko

Valery Matvienko was born on 21 June 1955. In 1977 he graduated from Ordzhonikidze Siberian Metallurgy Institute with a degree in engineering (ferrous metallurgy).

In 2008 Valery Matvienko became the first deputy CEO of Norilsk Nickel OJSC and was also a member of the executive committee of Norilsk Nickel OJSC. From 2007 through 2008 he was the director for the Engineering and Construction business at UC RUSAL. From 2005 through 2007 he was the general director of Russian Engineering Company LLC. In 2005 he was deputy director for the Engineering and Construction business at RUSAL Management Company Ltd. From 2003 through 2005 he held the positions of the Director of the Production Directorate, Deputy CEO for Production, Deputy CEO for the Aluminium Business at RUSAL Management Company Ltd . From 2002 through 2003 he was the production director of Russian Aluminium Management OJSC. From 1998 through 2002 he held management positions at the Krasnoyarsk, Bratsk and Novokuznetsk aluminium smelters.

Yakov Itskov

Yakov Itskov was born on 20 October 1966. In 1988 he graduated from Moscow State Mining University with a degree in Mining Machines and Complexes. From 2009 through 2010 he was first vice president of RussNeft Oil and Gas Company OJSC. From 2008 through 2009 he was the general director of BazelDorStroy LLC, from 2007 through 2008 he was the general director of Project and Construction Company Transstroy LLC. From 2006 through 2007 he was the managing director of Basic Element LLC. From 2001 through 2006 he was the general director of Soyuzmetallresurs CJSC, from 2000 through 2001 he was the deputy commercial director of Russian Aluminium OJSC, from 1999 through 2000 he was the deputy general director of SibPromMarket LLC, from 1995 through 1999 he was the deputy director for operations management at Alfa-Eco LLC, from 1992 through 1995 he was the general director of Internauka JSC. From 1991 through 1992 he was the commercial director of Espada small enterprise.

Dmitry Bondarenko

Dmitry Bondarenko was born on 16 May 1978. In 2001 he graduated from Nizhny Novgorod State Technical University with a degree in design of technical and technological complexes. From 2001 through 2009 he was the lead expert at GAZ Group Managing Company LLC where he was in charge of introducing the Toyota Production System. From 2009 he was head of the Production Department of the Aluminium Division at UC RUSAL.