OREANDA-NEWS  The shares of Pioneer Aluminum Industries Limited, an Indian alumina processing company in Andhra Pradesh, will be purchased by Rusal. This was reported by RBC with reference to the message of the Russian company.

It is specified that we are talking about the acquisition of 50 percent of the securities of the Indian plant. Rusal's subsidiary will buy out this stake in three stages from its current owners, Pioneer Group and KCap Group.

The publication also referred to its own source, according to which the deal planned by Rusal is part of a strategy aimed at ensuring the company's commodity security. In addition, it implies the diversification and restoration of sources of supply of raw materials.

In November last year, Rusal announced a 6.6 percent reduction in output and the start of production optimization. The reason for this was the negative economic situation: since the beginning of the year, alumina prices have almost doubled, and the resulting surplus of aluminum made it impossible to increase its cost. At that time, the price of alumina reached half the cost of this metal.