MOSCOW, July 5. /TASS/. Russia’s Rusal and Hebei Joy Sense Cable Co. (HJSC), a leading Chinese aluminium alloy cable manufacturer, have signed an agreement to establish a joint venture Rusal-Hebei Joy Sense Cable Special Aluminium Products Co. Ltd., Rusal reported Tuesday.
At this stage, the partners will invest $1 mln and will make further investment decisions on completion of the feasibility study, the report said.
The joint venture, which is going to be a production and sales company with the production located at HJSC’s facilities in Shijiazhuang (Hebei Province, 300 kilometers from Beijing), is established in the form of Sino-foreign equity joint venture with equal ownership stakes of 50% between the partners.
The existing facilities will be developed and modernized to meet the manufacturing requirements of the JV, Rusal said.
"The JV will produce aluminum cable products for modern power supply, such as high-temperature cables for overhead transmission lines made of aluminium-zirconium alloy produced under Rusal’s license, cabling and wiring products for solar and wind energy, and more. The JV will be able to process 72,000 tonnes of aluminium wire rod per year at full capacity. On top of cabling and wiring products manufacturing and sales, the JV’s scope of business will include research, development, provision of technical services and client support," the report said.
The JV’s products will be supplied primarily to China, Southeast Asia and India, as well as other countries included in the PRC government’s list of ‘Silk Road Countries’, Rusal said.
"The project has been implemented within our strategy to extend the collaboration with Chinese partners," Rusal CEO Vladislav Soloviev was quoted as saying. "The usage of aluminium and its alloys in cable production has been regulated in China by a special standard as of July, 2015. Rusal and Hebei Joy Sense Cable agreed to use this opportunity to enter the market of aluminium and alloy cable production. Rusal’s expertise in aluminium alloys production combined with HJSC’s position in the cable products market will generate a strong set of competitive advantages for the newly created joint venture, as well as an excellent positioning for entering the market," Soloviev said.