RUSAL ATTRACTED 46.6 MILLION EURO EXPORT CREDIT FOR MODERNIZATION OF ARMENAL FOIL PLANT

PanARMENIAN.Net - RUSAL, one of the world's leaders in producing primary aluminum has attracted a 46.6 million euro credit from Bayerische Landesbank. The credit is provided with the guarantee of EULER HERMES, the German Agency of Export Crediting and is destined for financing a large-scale program of modernization of ARMENAL foil plant, Firm Secret project reports. The modernization program at RUSAL's ARMENAL foil mill facility in Armenia, started in October'2004 is aimed both at improving the quality of its foil products and boosting the plant's profitability — in helping the mill to become one of the world leading foil producers. German engineering firm Achenbach was selected to execute the program scheduled for completion in 18 months at an investment cost of US $70 million. The credit will completely cover the cost of equipment and services essential for the program implementation and will be provided via two tranches. The first 6.99 million euro commercial tranche will be provided by BayernLB with term of 3.5 years, while the second one will make 39.61 and will be allocated with the guarantee of the German Agency of Export Crediting with the term of 8.5 years. Vladislav Soloviov, Chief Financial Officer noted, "The credit attracted by RUSAL will not only contribute to the development of company's activities in the region but will also play a key role for the Armenian economy. BayernLB is a pioneer to have credited business in the republic and we hope that other representatives of international association will follow its example." Minister of Trade and Economic Development of Armenia Karen Chshmaritian said, "The modernization of ARMENAL has become the one of the major investment programs to be carried out in the Armenian economy. Thanks to RUSAL Armenia will have a super modern foil plant and the BayernLB's credit received with the assistance of the Russian company will considerably improve the investment climate in the republic." The first stage of the modernization program is to be finished in autumn 2005. The modernization program, which will also provide for a major upgrade in foil rolling equipment and also the establishment of a full production cycle, will lift the plant capacity by 25,000 tons of foil per year, including 18,000 tons of highly profitable thin foil in 6-9 micron gauge.