OREANDA-NEWS. July 10, 2012. UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; MICEX-RTS: RUALR), the world’s largest aluminium producer, announces the start of the casting facilities upgrade programme on the Novokuznetsk aluminium smelter (NkAZ), which will increase value-added production (VAP) output. Programme CAPEX is expected to amount to more than RUR170 million.

NkAZ casthouse #2 has completed ahead of schedule the testing of the casing equipment supplied by the German Company Wagstaff, which will significantly enhance the 6xxx series billets product range. New casting equipment has already been calibrated by Wagstaff and Hertwich Engineering representatives and tested for 127mm and 152mm billet casting and soaking. It is the first time the RUSAL smelter will produce 127mm billets, which will play a major role in NkAZ expansion to fast-growing markets of Southeast Asia.

NkAZ continues to develop new alloy production. The smelter has successfully tested production of three new automotive alloys for piston blocks which are tailored for Russian carmakers GAZ and KAMAZ. Trial lots have already been supplied to customers for qualification.

The upgrade will also increase the smelter’s production output to 286,000 tonnes in 2012, with more than 40% VAP share (compared to 38% in 2011). In 2013 the upgrade will continue, in particular there are reconstruction plans for foundry alloys production line, which will increase VAP production by 18,000 tonnes per year and will significantly cut costs.

“Extending the product range will give NkAZ the opportunity to increase sales at domestic market and conquer new ones, including Asia and North America. The increase in VAP output will help us to make maximal margins possible and will boost our overall efficiency,” said RUSAL’s Director for Aluminium Division East, Vladimir Polin.