United company RUSAL: structure, leadership, products

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

RUSAL Corporation or Russian Aluminum is one of the largest Russian private companies. This corporation also actively interacts with partners representing countries of near and far abroad, and is one of the most powerful players in the corresponding segment of the world market. What is she releasing? Who owns and manages the company?

Company overview

RUSAL is considered one of the largest enterprises in our country and the world's largest producer of aluminum and alumina. Legally, this company is registered on the island of Jersey, which belongs to the UK. The total capacity of aluminum smelters owned by the corporation is about 4.4 million tons, alumina - about 12.3 million tons. In the Russian market, in terms of revenue, RUSAL is second only to the largest oil and gas corporations.

History of the enterprise

RUSAL was founded in 2007 as a result of the merger of the assets of Russian enterprises - Russian Aluminum, SUAL, and the Swiss company Glencore. It can be noted that the symbols belonging to the Russianaluminum.”

In fact, the structure of RUSAL Corporation includes factories founded in the early Soviet period. Thus, the first domestic aluminum plant was launched in the USSR in 1932 in the city of Volkhov. The company's electricity supplier was the Volkhovskaya HPP, bauxite raw materials were also mined nearby. In 1933, a similar enterprise was launched in Zaporozhye, in the Ukrainian SSR. In the late 1930s, the development and mining of bauxite began, and, accordingly, the production of aluminum and alumina in the Urals: Soviet industrialists launched the Ural Aluminum Plant.

When the Great Patriotic War began, the plant in Zaporozhye was captured, Volkhovsky was under threat, so the Soviet industrialists decided to build new plants in the rear - in Krasnoturinsk and Novokuznetsk. After the war, the Soviet economy experienced a growing need for aluminum. New factories began to open in the regions of Eastern Siberia. In the 1960s, the world's largest aluminum factories opened in Krasnoyarsk and Bratsk. In order to provide these enterprises with alumina - at that time mainly imported, factories were built in Achinsk and Nikolaev.

In 1985 the Sayanogorsk aluminum smelter was opened in Khakassia. It can be noted that by the end of the 80s the USSR came out on top in the world in aluminum production. The country actively exported metal. The Sayanogorsk aluminum smelter greatly contributed to the growth of this industry. But soon after its discovery in the USSR, well-knowndifficulties, restructuring, and then the collapse of the country.

The formation of the Russian Aluminum Corporation was preceded by the period of inclusion in the world market of two other major players in the metallurgy market - Siberian Aluminum, as well as Sibneft, which also had aluminum assets. In 2000, these corporations merged their assets, as a result of which Russian Aluminum was formed. This corporation included the largest aluminum plants in Russia and Ukraine.

Subsequently, the company began to actively expand its activities abroad. But the corporation also actively developed in the Russian market. So, in 2006, the Khakass aluminum plant was opened, also in Sayanogorsk. It can be noted that by 2007 Russian Aluminum controlled about 80% of the industry in its segment in Russia.

As for the other subject of the transaction, which resulted in the formation of the RUSAL corporation - the SUAL company, it can be noted that this corporation was founded in 1996 in Kamensk-Uralsky. In the course of its development, it has been quite active in buying aluminum production enterprises - but, as a rule, relatively small ones. Also, this company acquired the Zaporozhye aluminum plant. In fact, by 2007, SUAL controlled that part of the market that did not belong to Russian Aluminum, that is, its share in the segment was about 20%.

But, one way or another, in 2007, both companies merged, as a result of which RUSAL OJSC was formed.

Company during the crisis of 2008-2009years

The corporation had to overcome rather big difficulties during the economic recession in Russia in 2008-2009. It is known that the company experienced difficulties with the repayment of loans. However, the corporation managed to cope with the problems. Between October and December 2009, RUSAL entered into a number of agreements with major banks, both Russian and foreign, to restructure debts in the amount of approximately USD 16.8 billion.

Who owns and runs the corporation?

It is useful to look at the ownership structure of a corporation and how it has changed over time.

Until 2010, the En+ holding, controlled by Oleg Deripaska, was the company's largest shareholder. The next largest share of assets belonged to SUAL. The ONEXIM group, owned by Mikhail Prokhorov, owned the third largest stake in the corporation. Another major shareholder of RUSAL was Glencore.

In January 2010, the corporation carried out an IPO on the Hong Kong Stock Exchange. During the trading process, the company managed to sell about 10.6% of the shares for 2.24 billion US dollars. All assets of the corporation were valued at about $21 billion. It can be noted that the main investors in the business were Vnesheconombank, as well as the Libyan Investment Authority fund, which represented Libya. These corporations acquired, respectively, 3.15% and 1.43% of the securities of the Russian aluminum giant. After the IPO, the shares of key shareholders have changed somewhatenterprises - they decreased in accordance with the size of the package of assets sold to investors.

Now Oleg Deripaska's holding owns 48.13% of the shares of Russian Aluminum, Sual Partners owns 15.8% of the corporation's assets. ONEXIM Group owns 17.02% of the shares of Russian Aluminum. Glencore Corporation owns 8.75% of the assets of the Russian aluminum company. In the free trade regime, 10.04% of the company's shares are circulating. It can be noted that 0.26% of Russian Aluminum's securities belong to the company's management. At the same time, the general director of the corporation owns 0.23% of the company's shares.

Company management

Viktor Vekselberg has been the Chairman of the Board of Directors of JSC RUSAL since the company was founded. In 2012, he announced his resignation. In October 2012, the Board of Directors of the corporation was headed by Matthias Warnig. The company's president is Oleg Deripaska. Vladislav Solovyov is the CEO of Russian Aluminum.

The main activities of the corporation

Let's study in more detail what RUSAL does.

The main activity of the corporation, as we noted above, is the production of alumina and aluminum. Among the used schemes for organizing the production of the corporation is tolling, in which raw materials are imported from abroad, processed at the plants of Russian Aluminum, and the finished product is then transported abroad.

RUSAL is actively cooperating with other major corporations. For example, together with RAO "UES of Russia" it implementeda project for the construction of the Boguchanskaya HPP, as well as an aluminum plant with a capacity of about 600 thousand tons in the Krasnoyarsk Territory. The corporation initiated the construction of many large enterprises in the industry. Let's consider which of them are key in the company's activities today.

RUSAL activities: factories

The plants of the enterprise can be classified into the following main categories:

- enterprises producing aluminum;

- alumina plants;

- bauxite mining companies;

- foil factories.

At the same time, in each of the marked categories of plants there are both Russian and foreign companies.

Aluminum plants

The first aluminum plant in the USSR, as we noted above - Volkhovsky, was founded in 1932 and is still operating. Its capacity is not the largest, according to a number of sources - about 24 thousand tons, but nevertheless, this enterprise is a significant infrastructure facility of the company.

After Volkhovsky, in 1939, the Ural aluminum plant was launched in Kamensk-Uralsky. It also operates to this day, but now it is mainly engaged in the production of alumina.

Enterprises built during the Great Patriotic War - Novokuznetsk and Bogoslovsky aluminum smelters, opened in 1943 and 1944, respectively. They also work successfully so far. Bogoslovsky Aluminum Smelter mainly produces alumina, and also includesfoundry area. The company produces protectors made of aluminum, as well as its various alloys. The plant's capacity is about 960 thousand tons of alumina per year. Novokuznetsk plant continues to specialize in the production of aluminum.

The most powerful RUSAL enterprise belonging to the first category is Krasnoyarsk Aluminum Plant. It has a capacity of about 1008 thousand tons. The Krasnoyarsk Aluminum Plant was founded in 1964 in Krasnoyarsk and is one of the key industrial centers in the corresponding segment of the Russian industry. RUSAL's second largest aluminum plant is located in Bratsk. It was founded in 1966. Its capacity is about 1006 thousand tons. The third largest RUSAL plant in the corresponding category is the Irkutsk aluminum plant. It was founded in 1962. The Irkutsk aluminum smelter has a capacity of about 529 thousand tons. This plant is located in Shelekhov.

Volgograd aluminum smelter is among RUSAL's enterprises to be diversified. In particular, it is planned to expand the production of baked anodes there. The Volgograd aluminum plant has the necessary infrastructure for the production of rolled products. Its foundry capacity is about 60 thousand tons per year.

Abroad, RUSAL has aluminum plants in the Swedish city of Sundsvall, as well as in Nigerian Ikot Abasi.

Alumina refineries

If we talk about RUSAL alumina refineries, then in Russia the largest enterprises of the corresponding typeare, as we noted above, Bogoslovsky, Ural aluminum plants, as well as plants in Achinsk and Boksitogorsk.

Abroad, RUSAL's alumina production facilities are located in Nikolaev, Ukraine, Fria, Guinea, Gladstone, Australia, Oginish, Portovesma, Italy, and the Jamaican cities of Kirkwain and Mandeville.

Bauxite mines

The largest Russian bauxite mining enterprises owned by RUSAL are located in the Ukhta region, in Severouralsk, Belogorsk. Abroad - in the Guiana Georgetown, in Fria, as well as another Guinean city - Kindia.

Foil factories

Foil production is carried out by RUSAL's Russian enterprises located in Sayanogorsk, Dmitrov and Mikhailovsk. There is a large foil plant, the second largest of all that belongs to Russian Aluminum, in the capital of Armenia, Yerevan.

It can be noted that the assets of the corporation include enterprises that produce not only, in fact, aluminum, but also, in particular, alloys from it, foil. The corporation owns factories that form a complete production chain - from mining plants to factories for the production of rolled products. This feature of the organization of production allows the company to achieve the highest quality products. Russian aluminum is valued in the world largely for its high quality.

The key production facilities of the corporation are located in Siberia, which, on the one hand, gives the company the opportunity to gain access to naturalresources of the region, on the other hand, brings its infrastructure closer to one of the largest consumers of aluminum, China.

Business Outlook

Let's study what are the prospects for the development of the business that the Russian aluminum company is building. According to experts, RUSAL is trying to optimize the output of its products, taking into account the changing demand in the world market. Thus, the focus is supposed to be on the production of products with high added value. RUSAL is building a highly efficient production facility in Eastern Siberia that will enable the company to deliver metal to customers when demand picks up.

RUSAL owns huge reserves of raw materials, has its own infrastructure for the implementation of scientific and technical developments that can help optimize production and reduce its cost. Another important task of RUSAL is to create an energy base that will allow increasing the level of autonomy of production by generating its own electricity. In this direction, the corporation is cooperating with RusHydro as part of the construction project of the Boguchanskaya HPP.

RUSAL is also actively developing international relations, both in the near and far abroad. Russian Aluminum is an active participant in the development of the Russian market in the relevant segment.

The company initiated the formation of the Aluminum Association, which, according to experts, plays a significantrole in overcoming the economic downturn at the current stage of development of the national economy of Russia. The capabilities of the corporation are of great importance in terms of restoring the performance of the corresponding segment of the Russian economy and its successful development.