OREANDA-NEWS. June 20, 2011. Alcoa (NYSE:AA) and PSC VSMPO-AVISMA Corporation, the world’s largest titanium producer, announced they have signed a Memorandum of Understanding (MoU) to cooperate in the design and production of innovative light alloy die forgings and extrusions for the commercial transportation market, including solutions for light-weight rail car production.

“Alcoa and VSMPO-AVISMA are both world leaders in the development of advanced technologies, and by working together we can create exceptional products of superior quality,” said Alcoa Chairman and CEO Klaus Kleinfeld. “We fully expect that this collaboration will let us leverage our existing product portfolios and research in a mutually beneficial manner. I am excited to have VSMPO-AVISMA as a partner, as it shares Alcoa’s commitment to environmental stewardship and sustainable manufacturing practices.”

Commenting on the Memorandum signing, Sergei Chemezov, Chairman of the Board of Directors, PSC VSMPO-AVISMA and Head of ‘Rustechnology’, said: “This document confirms our striving for mutually beneficial cooperation. This means joining efforts with the world-wide technological leader of the aluminum industry in the development and production of light-alloy high-tech products for commercial transport. Those products are in high demand both in Russia and in the world because their application provides significant savings and meets the latest environmental requirements. I believe joint work will generate innovative solutions that will find use in various branches of industry”.

Mikhail Voevodin, General Director, PSC VSMPO-AVISMA Corporation said: “I am confident that cooperation between VSMPO-AVISMA and Alcoa will result in significant accomplishments, yielding new solutions in the commercial transportation industry.”

One result of the MoU may be the development of wide (up to 700 mm or 27.5 inches) and long (up to 26 meters or 85 feet) extrusions made of advanced aluminum alloys designed for passenger and freight cars, including next- generation high-speed rail for the Russian market. These aluminium products will increase the energy efficiency and reduce the carbon footprint of rail cars through light-weighting and the infinite recyclability of aluminum.

Alcoa and VSMPO-AVISMA will form working teams to coordinate the execution of projects resulting from this MoU. The MoU does not signal the establishment of a joint venture, partnership or any other formal business entity between the parties.