The story
Founded by Oleg Deripaska in 2000.1
Predecessor companies 1991–2000
UC Rusal's roots lie in the business activities of Russian businessman Oleg Deripaska, who entered the metals industry as a commodities agent and broker at the Moscow Trade Stock Exchange (Moskovskaya Tovarnaya Birzha (MTB)) and then at the Russian Commodities and Raw Materials Exchange (Rossiyskaya Tovarno-Syryevaya Birzha (RTSB)). As a broker, Deripaska dealt in a wide range of commodities, including aluminium. His work also included trading with major Russian aluminium smelters.
Between 1991 and 1994, companies set up by Deripaska with the backing of industrialist and entrepreneur Michael Cherney started investing in the shares of Sayanogorsk Aluminum Smelter (SAZ), one of the newest and most modern aluminium plants built in Soviet times (1980–1985). In 1994, Deripaska was elected the General Director of SAZ.
In 1997, the companies controlled by Deripaska underwent a general restructuring, resulting in the creation of Sibirsky Aluminium to manage the aluminium and alumina assets acquired by Deripaska's companies. By 2000, Sibirsky Aluminium managed, among other aluminium-related assets, majority interests in the Sayanogorsk aluminium smelter, the Sayanal foil mill, a fabricating plant in Samara, Russia, and a minority interest in the Nikolaev alumina refinery in Ukraine.
Founding of Rusal and company expansion 2000–2007
Gradual strategic acquisitions and growth projects eventually led to the creation of one of the world's largest aluminium and alumina producers. Rusal has historically opted to integrate its assets under centralized operational and management control fully. The company has achieved increased production and efficiency in most of its acquired facilities through production "creep" (improvements achieved through targeted improvements to key processes), as well as by undertaking key modernization and expansion projects.
Rusal was founded in 2000 after Sibirsky Aluminium and Millhouse Capital, owned by Roman Abramovich, agreed to merge their aluminium and alumina assets.
By 2002, Sibirsky Aluminium and Millhouse Capital were managing controlling stakes in the Armenal foil mill in Armenia and the Belaya Kalitva metallurgical plant and Novokuznetsk aluminium smelter in Russia, and also took under management the Friguia bauxite and alumina complex and Bauxite of Kindia Company in Guinea to secure bauxite and alumina supply for its Russian smelters. In 2002, Rusal also established the Engineering and Technology Center in Krasnoyarsk, which has since become the foundation of the company's internal R&D projects.
In 2003, Millhouse Capital sold its 50% stake in Rusal to Basic Element, which held the remaining half of the shares and belongs to Deripaska. In Ukraine, RUSAL increased its share in the Nikolaev alumina refinery to 98%.
In 2004, Rusal made the strategic decision to focus on its upstream business and began disposing of its downstream assets, including the sale of its fabricating division to Alcoa in January 2005. The divestiture process was largely completed in 2006 with the distribution of certain aluminium construction plants and other non-core assets to companies controlled by RUSAL's beneficial owner. In 2004, Rusal obtained a licence to develop bauxite mines in Guyana, and the Bauxite Company of Guyana was subsequently founded.
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From 2004 to 2006, RUSAL acquired several strategically important assets worldwide. In 2004, RUSAL acquired a 90% interest in the Boxitogorsk alumina refinery in Russia and increased its holding in the Nikolaev alumina refinery to 100%.
In 2005, RUSAL bought a 50% stake in the Komi alumina project from SUAL and became its partner in the project, which involved the construction of an integrated bauxite and alumina complex in Russia's Komi Republic.
Also in 2005, RUSAL completed the acquisition of a 20% equity interest in one of the world's largest alumina refineries in terms of production capacity, Queensland Alumina Limited, located in Queensland, Australia.
Furthermore, Rusal purchased assets of a cathode plant in Lingshi County of Shanxi Province, China. In April 2008, the company acquired assets of another cathode plant in Taigu County of Shanxi Province, China, which have been integrated into the existing cathode plant in Lingshi.
In 2006, Rusal acquired assets of the state-owned Aroaima Mining Company in Guyana, acquired the remaining equity interest in the Friguia bauxite and alumina complex in Guinea, completed an extensive retrofit of the Armenal foil mill and commissioned the Khakas aluminium smelter in Russia, one of the most advanced aluminium production facilities in the world. Rusal also acquired a 56.16% equity interest in the Sardinian alumina refinery, Eurallumina.
In May 2006, Rusal and RusHydro signed a cooperation agreement for the construction of the Boguchanskaya hydropower station (HPP) and the Boguchansky aluminium smelter. Rusal increased ownership in the Bratsk, Krasnoyarsk, Sayanogorsk, and Novokuznetsk aluminium smelters, the Achinsk and Boksitogorsk alumina refineries, and the Russian National Aluminium and Magnesium Institute (VAMI) to 100% in November 2006, and in Sayanogorsk in June 2007.
To stay competitive, the VAMI and SibVAMI aluminium and magnesium research institutes became the backbone for engineering and technology centres involved in the development of new, unique production technologies, including the RA-300 and RA-400 reduction cells for Rusal. The new technologies allowed for large-scale greenfield and brownfield projects. In 2005, Rusal created its own engineering and construction subsidiary, Rusal-Engineering Development Limited, responsible for modernization and construction projects.
In December 2006, Rusal acquired through a privatisation process a 77.5% equity interest in the Aluminium Smelter Company of Nigeria (ALSCON). The Group acquired a further 7.5% equity interest in ALSCON from MAN Ferrostaal AG in January 2008.
From Wikipedia’s article on Rusal, shared under CC BY-SA 4.0.4