June 19, 2010
Alcoa in deal to boost aluminum use in Russian shipyards
Alcoa (NYSE: AA) Chairman and CEO Klaus Kleinfeld and United Shipbuilding Corporation President Roman Trotsenko, have signed a Memorandum of Understanding. The aim is to help develop the Russian shipbuilding market and increase the use of aluminum in Russian shipyards.
Commenting on the signing, Klaus Kleinfeld said: "We are very glad to start full scale cooperation with the USC, the corporation uniting practically all the main Russian assets in shipbuilding at present, which jointly account for more than 65 percent of the products manufactured in the Russian shipbuilding sector.
Earlier this month, Russian President Dmitry Medvedev signed a decree listing state-owned USC, which was estblished in 2007, as a "strategically important open joint-stock company" and stipulating that the state-owned assets of a number of Russia's shipbuilding companies be passed to it.
"New technologies and advancements are making aluminum an increasingly popular choice for ships of all sizes throughout the world," Kleinfeld said. "I'm absolutely convinced that the potential for the usage of aluminum is very high in the shipbuilding industry, and especially in Russian shipbuilding."
Roman Trotsenko, President of USC, said: "We appreciate the interest of such a major partner as Alcoa in Russian shipbuilding industry modernization projects. We hope that our joint efforts will bring real results in a fairly short term."
Alcoa has been present in Russia since 1993. In 2005, it purchased two leading aluminum fabricating facilities Alcoa SMZ (formerly the Samara metallurgical plant) and Alcoa Metallurg Rus (formerly Belaya Kalitva metallurgical production plant.). Alcoa has modernized the facilities, investing more than $750 million in upgrades. The capabilities of the plants are now state of the art and are serving a variety of markets in Russia and beyond.