RUSAL Announces Full Year Production Results for 2009
RUSAL/RUAL), the world’s largest aluminium and alumina producer, announces its
key production data for 2009 (Note 1).
Key highlights * Total aluminium output amounted to 3.9 million tonnes in 2009, a reduction of 11% compared to 2008. * Alumina output totaled 7.3 million tonnes in 2009, a decline of 36% as compared to 2008. * Following weakened demand, bauxite production was reduced by 41% to 11.3 million tonnes in 2009 as compared to 2008. * Aluminium foil and packaging production volume of about 67.8 thousand tonnes in 2009 remained practically unchanged as compared to 2008. * Assuming growth in demand for aluminium in 2010 as forecast by the experts referred to below, in 2010 RUSAL plans to produce 3% more aluminum and 7% more alumina than in 2009.
Commenting on the today’s announcement,
“The past year tested the resilience of the aluminium industry and forced
every company to respond to the downturn. RUSAL acted decisively to address
the consequences of the global economic downturn and enhanced its long term
competitiveness through its cost-cutting programme, successful restructuring
of its debt and its share listing on the
stock exchanges. We have laid a solid foundation for the further sustainable
development of our business.
We are seeing the first signs of a recovery in demand, as more countries
emerge from recession, reflected in an increasing number of orders from our
which encourages our optimism about prospects for the aluminium industry. We
believe that the stabilization that is now being seen will lead to consumption
growth exceeding the pace of production increases.”
For Total Output in 2009, please visit: http://www.prnasia.com/sa/attachment/2010/02/2010022239588.pdf
Market analysis (Note 2)
2009 was one of the toughest years on record for the global economy and
commodity markets, including the aluminium industry. According to CRU Group,
the global recession resulted in an 8.2% drop in demand for aluminium in 2009
compared to 2008. In 2009, the average price for aluminium dropped by 35%
compared to 2008. Responding to these negative factors, in 2009, aluminium
producers cut annual production by about 2.4 million tonnes and postponed
launching new facilities totaling about 3.5 million tonnes a year. Overall,
global aluminium production dropped 5.9% as compared to 2008 to 37.8 million
tonnes in 2009.
In 2009, global prices for aluminium and other commodities were supported
by the growing Chinese economy, which was aided by a
programme supporting economic growth through major infrastructure projects and
a range of measures to stimulate demand for industrial products, including the
automotive industry. According to
developed economies initiated restocking throughout the aluminium production
chain, further supporting demand.
tonnes in 2009, a reduction of 11% compared to 2008. The lower volume was in
part caused by the temporary suspension of the least cost-efficient smelters,
the Novokuznetsk (NkAZ), Bogoslovsk (BAZ) and Urals Aluminium Smelters (UAZ)
For details, please visit: http://www.prnasia.com/sa/attachment/2010/02/20100222627570.pdf
Total attributable alumina output for
tonnes in 2009, a decline of 36% as compared to 2008. Production was cut at
relatively high cost alumina facilities, such as Aughinish (
Zaporozhye Alumina Refinery (ZALK,
suspended at Eurallumina (
For details, please visit: http://www.prnasia.com/sa/attachment/2010/02/20100222276070.pdf
Due to weakened demand, the Company’s overall bauxite production was
reduced by 41% to 11.3 million tonnes in 2009 as compared to 2008.
For details, please visit: http://www.prnasia.com/sa/attachment/2010/02/20100222102772.pdf
RUSAL will continue implementing its core investment project -the
construction of the Boguchanskaya Hydro Power Plant. The Company is also
actively seeking project financing to revive the construction of the Taishet
and Boguchansky Aluminium Smelters.
Outlook for 2010
A number of experts are forecasting that 2010 will see considerable growth
of the aluminium market generated by rising demand from the automotive and
packaging sectors. CRU analysts expect aluminium consumption to grow by 12.6%
in 2010 as compared to 2009. Positive dynamics are expected to be driven
primarily by continued economic development in
urbanization. Demand for aluminium is also expected to be supported by the
major developed countries as the global economy revives.
Assuming the gradual restoration of the market in 2010, RUSAL plans to
increase production of aluminium by 3% in 2010, compared to 2009. The increase
is expected to include an increase in production at the Siberian plants,
Smelter (IrkAZ) in
On the basis of the same assumption, RUSAL expects to increase alumina
output by 7% in 2010 compared to 2009, by stabilisation of alumina production
at the Achinsk Alumina Refinery (AGK), Bogoslovsk (BAZ) and Urals Aluminium
Smelters (UAZ) as well as restoring production at the Boksitogorsk Alumina
Refinery (BGZ) in
Note 1: The figures disclosed in the announcement are unaudited and therefore may differ from the audited figures Note 2: Source: CRU Group (unless otherwise stated)
RUSAL (http://www.rusal.com ) is the world’s largest producer of aluminium,
in 2008 accounting for approximately 11% and 13% of global production of
aluminium and alumina, respectively. RUSAL employs more than 75,000 people in
19 countries, across 5 continents. RUSAL markets and sells its products
primarily in the European, Japanese, Korean, South East Asian and North
American markets. RUSAL’s ordinary shares are listed on The Stock Exchange of
Hong Kong Limited (Stock code: 486) and global depositary shares representing
RUSAL’s ordinary shares are listed on the professional compartment of Euronext
Paris (RUSAL for Reg S GDSs and RUAL for Rule 144A GDSs).
This announcement contains statements about future events, projections,
forecasts and expectations that are forward-looking statements. Any statement
in this announcement that is not a statement of historical fact is a forward-
looking statement that involves known and unknown risks, uncertainties and
other factors which may cause our actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. These
risk and uncertainties include those discussed or identified in the Prospectus.
the forward-looking statements, and, except as may be required by applicable
law, assumes no obligations to supplement, amend, update or revise any such
statements or any opinion expressed to reflect actual results, changes in
assumptions or in
these statements. Accordingly, any reliance you place on such forward-looking
statements will be at your sole risk.
The information contained in this press release is for media advice only.
The contents are true and accurate at the time of publishing, however, may
change over time.
For Mass Media Enquiries: RUSAL Vera Kurochkina Tel: +7-495-720-5170 Vera.Kurochkina@rusal.com For Investor Enquiries: RUSAL Catherine Shiang Tel: +852-6391-6819 Catherine.Shiang@rusal.com