UC RUSAL Sustainability report 2016


Profile

United Company RUSAL (UC RUSAL, RUSAL, the Company) is one of the largest producers of primary aluminium and alloys in the world. The company operates in 19 countries around the world on five continents, including Russia, Australia, Armenia, Kazakhstan, China, Turkey and other countries. The headquarters are located in Russia (Moscow). G4-5, G4-6, G4-3

The business model of UC RUSAL is built on a vertically integrated production chain comprising deposits of bauxite and nepheline ore, alumina refineries, aluminium smelters, casting systems, foil rolling plants, and power generating facilitiesG4-9

The Company comprises production facilities grouped into seven divisions. Producing and processing production facilities are located in Russia and abroad.

Division

Production facilities in Russia

Production facilities abroad

Aluminium

9 aluminium smelters located mainly in Siberia. The largest ones are Krasnoyarsk and Bratsk aluminium smelters.

1 aluminium smelter in Sweden

Alumina Division

3 alumina refineries

2 bauxite mines

1 nepheline mine

4 alumina refineries in Ireland, in Ukraine, in Jamaica and in Australia

3 bauxite mines in Jamaica, Guinea and Guyana

New Projects Directorate

3 powder plants

1 cryolite plant

2 silicon factories

1 quartzite mine

Other production facilities

1 quartzite mine in Ukraine

Packaging Division

3 foil mills

1 foil mill in Armenia

The production facilities of the Energy Division form own source of power supply for RUSAL. The main asset is the Boguchanskaya HPP (part of the Boguchany Energy and Metals Complex).

The Engineering and Construction Division unites organisations providing construction, engineering and maintenance services (nine companies). The Technical Directorate includes four companies of the RUSAL research and development complex. All companies of both divisions are located in Russia.

Products

UC RUSAL produces a broad line of products, with almost half of them (45%) being high value-added products (aluminium sheet, ingots, wire rod, foundry alloys, billets, etc.). The Company plans to increase the share of these products to 55 % by 2020. The main products of the Company include primary aluminium, aluminium alloys, foil and alumina.

Main types of products G4-4

Product type

Industry application

Description

Primary aluminium

Transport, construction, electrical and packaging industries

Primary aluminium is produced in accordance with quality standards and specifications developed at the request of the customers

High purity aluminium

Electronics, production of computer hard drives and condensation foil

UC RUSAL is the only producer of high purity aluminium in Russia and other CIS countries

Aluminium alloys

Transport, construction, electrical and packaging industries

UC RUSAL produces a wide range of high quality aluminium alloys

Foil and packaging

Food, pharmaceutical, construction, tobacco and perfume and cosmetics industries

The production facilities of UC RUSAL produce foil with a gauge of 5 to 240 microns and a number of products based on it

Aluminium powder, paste 
and granules

Metallurgical, chemical, energy, mining and construction industries, production of military equipment

UC RUSAL is the largest Russian producer of aluminium powder products

Wire rod

Cable production, iron and steel industry, production of hardware items

UC RUSAL produces the wire rod in accordance with the GOST and international specifications

Alumina 
and bauxite

Intermediate products, from which aluminium is made

High quality alumina is produced by the Bayer process

Silicon

Metallurgical, chemical, electrical, production of solar cells

UC RUSAL produces metallurgical and refined silicon. The product registered in the REACH system

Gallium

The production of chemical compounds used in solar energy and electronics industry

UC RUSAL produces high purity metallurgical gallium

Corundum

Production of abrasive tools, ceramic and refractory products

UC RUSAL is one of the world's largest producers of white corundum

Protectors from aluminium alloys

Shipbuilding, oil and gas, housing and utility sector

The products are used for long-term protection against corrosion of metallic objects in aggressive environments (marine and bottom water, ground and reservoir waters)

Aluminium wheel discs

SKAD alloy wheels are installed on passenger cars

The disks are produced using the breakthrough technologies. Some models are certified by TUV

UC RUSAL supplies aluminium products to Europe, America, Southeast Asia, as well as the domestic market. The products are delivered to the customers by rail, road, river and maritime transport. G4-8

Geographic structure (volume), %

 

 

Means of transportation of the products

Products

Means of transportation

Aluminium in bundles and ingots

Rail transport (boxcars and combined cars), trucks, river transport and  maritime transport 
(vessels of 3.1 to 20.4 thousand tonnes of dead weight)

Aluminium in slabs and billets

Rail transport (gondola cars), trucks, river transport and maritime transport (vessels of 3.1 to 20.4 thousand tonnes of dead weight)

Alumina

Rail transport (hopper cars, gondola cars (including liners), combined cars, boxcars and sea transport (vessels of 23 and 45 thousand tonnes of dead weight).

Presence in financial markets

The ordinary shares of UC RUSAL are included in the quotation lists of the Hong Kong Stock Exchange, the Moscow Exchange, and the Euronext Paris trading in the form of Global Depository Shares (GDS) and the Moscow Exchange in the form of Russian Depository Receipts (RDR).

Shareholding structure

In 2016, the main shareholders of the Company were: En+, SUAL Partners, Onexim and Amokenga Holdings. The number of shares in public hands amounted to 10.05% of the total stock of the Company. G4-7

Participation in other companies

The Company uses the potential for income diversification through investments in Norilsk Nickel, the world's largest producer of nickel and palladium and one of the leading producers of platinum and copper; UC RUSAL owns 27.82% of the company's shares. UC RUSAL also holds 50% of the shares in the coal company Bogatyr Komir (Kazakhstan).