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Rusal to invest about $5.2 bln in environmental friendly upgrade

Rusal CEO mentioned that the current production volumes would not rise after the upgrade

ST.PETERSBURG, June 7. /TASS/. Investments in the environmentally friendly upgrade of Rusal's plants will amount to about 380 bln rubles ($5.2 bln), Rusal CEO Evgeny Nikitin said in an interview with TASS on the sidelines of the St. Petersburg International Economic Forum (SPIEF). The company expects to launch the main stage of construction of new plants in 2023, he added.

"It is worth focusing on the amount of 380 billion rubles. After the designing that we have now started, the entire amount will be specified," he said.

The main stage of the environmental upgrade of factories may begin in 2023, Nikitin noted. At the same time, Rusal does not plan to increase the production capacity of the plants after their upgrade, it will maintain the current production volumes, the head of the company added.

Rusal expects to attract financing through commercial loans, backed by a guarantee from the state, which guarantees banks a return of funds, as well as part of their own funds, Nikitin said.

"In this case, the guarantee is given by the state. But we pay for the loan, including interest on it," the head of the aluminum holding said.

Rusal previously announced plans to upgrade the production at its four plants in Krasnoyarsk, Shelekhov, Bratsk, and Novokuznetsk. The company expects that this will make aluminum production more environmentally friendly, reducing emissions of many substances into the atmosphere by ten times. The project is designed for ten years, the peak of investments will be in 2022-2027. Industry and Trade Minister Denis Manturov estimated the volume of basic investments in the modernization of plants until 2027 at 385 billion rubles ($5.28 bln).