RUSAL Announces Full Year Production Results for 2009
MOSCOW, Feb. 22 /PRNewswire-Asia/ -- RUSAL (SEHK: 486; EuroNext: 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, Oleg Deripaska, CEO of RUSAL said: "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 Hong Kong and NYSE Euronext Paris 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 clients in Europe and the U.S. as well as continued economic growth in Asia 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 USD 685 billion stimulus 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 Brook Hunt, in late 2009, the revival of developed economies initiated restocking throughout the aluminium production chain, further supporting demand.
Aluminium
UC RUSAL total attributable aluminium output amounted to 3.946 million 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) in Russia and the Zaporozhye Aluminium Smelter (ZALK) in Ukraine.
For details, please visit: http://www.prnasia.com/sa/attachment/2010/02/20100222627570.pdf
Alumina
Total attributable alumina output for UC RUSAL amounted to 7.279 million tonnes in 2009, a decline of 36% as compared to 2008. Production was cut at relatively high cost alumina facilities, such as Aughinish (Ireland) and the Zaporozhye Alumina Refinery (ZALK, Ukraine). Production was temporarily suspended at Eurallumina (Italy), Windalco (Jamaica) and Alpart (Jamaica).
For details, please visit: http://www.prnasia.com/sa/attachment/2010/02/20100222276070.pdf
Bauxite
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
Investment projects
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 China and India due to growing 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, Alscon (Nigeria), KUBAL (Sweden) and potline 5 at the Irkutsk Aluminium Smelter (IrkAZ) in Russia reaching its full production capacity.
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 Russia and Aughinish Alumina Refinery in Ireland.
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)
ABOUT RUSAL
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).
Forward-looking statements
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. UC RUSAL makes no representation on the accuracy and completeness of any of 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 UC RUSAL's expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.
Disclaimer
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
[email protected]
For Investor Enquiries:
RUSAL
Catherine Shiang
Tel: +852-6391-6819
[email protected]
SOURCE RUSAL
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