RUSAL inks supply contract with China North Industries

Nov. 3, 2009 (China Knowledge) - United Company RUSAL, the world's largest aluminum producer controlled by Russian magnate Oleg Deripaska, has inked an agreement to supply 1.68 million tons of the metal to China North Industries Corp from 2010 to 2016, sources reported.

Sales to the Chinese company is estimated to be 5% of the Russian firm's revenue in 2009, and the figure is expected to rise to 10% by 2015, the company said, adding that the metal will be shipped to China North Industries from RUSAL's Siberian smelters.

Xu Yuping, an executive with China North Industries, said the deal will help reinforce the fast-growing trade partnership between China and Russia.

RUSAL, the world's biggest aluminum producer, last month re-started plans to list on the Hong Kong Stock Exchange and raise approximately US$2 billion, which will be used to restructure its debts totaling more than US$16 billion.

The Russian company plans to launch the initial public offering by the end of this year. However, the IPO plan is still subject to approval from the Hong Kong regulatory authorities.

The Russian firm expects to list 10% of its shares on the HKEx. Credit Suisse and Goldman Sachs were hired to handle the deal.