OREANDA-NEWS. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), a leading, global aluminium producer, announces a plan to modernize the SUAL-Powder Metallurgy (Shelekhov, Russia) plant. The total project investment is estimated to be EUR 4 mln.

The plant is acquiring a classifier mill HOSOKAWA Alpine (Germany). The installation of the new equipment will result in an increase in production capacity by 30% as well as launching a new range of ultra-high quality aluminium powders. This material is used in construction, in particular in the production of autoclave aerocrete.

The installation of the new Alpine equipment at SUAL-Powder Metallurgy is part of a broader modernization of the aluminium powder production project. As of today, assembly works are being carried out at the plant, scheduled to complete in January 2014. The new equipment will run at full capacity in August 2014.

Russia and CIS aerocrete industry, the world's fastest growing aerocrete market, is the key consumer of new aluminium powder to be produced by SUAL-Power Metallurgy. The consumption of aluminium-based gassing agents has been growing by 8-12% annually with an increasing demand for high-quality agents. With consumption volumes up to 12,000 tonnes, RUSAL's market share will reach 60%.

'The introduction of a wide range of water-retention powders and pastes will enhance our position within the market. The new classifier mill will not only improve the quality of our products and process safety significantly, but also increase the plant's monthly production capacity of new, different in terms of particle composition aluminium powders used in aerocrete productioby up to 120 tonnes,' said Alexey Arnautov, Director of Aluminium Division West.

RUSAL also exports aluminium powder to Europe. According to data from the European Association of Autoclaved Aerated Concrete Manufacturers, the production of aerocrete blocks with aluminium-based gassing agents used in housing construction has been increasing. Turkey, Denmark and the UK are market leaders.