Rusal completes acquisition of aluminum alloy producer from Germany
MOSCOW. April 16 (Interfax) - Rusal has closed a deal to purchase assets of Germany's Aluminium Rheinfelden Group following approval by the German Federal Cartel Office and the German Federal Ministry for Economic Affairs and Energy, Rusal said in a press release.
"The acquisition reinforces Rusal's position as the supplier of choice to its international network of automotive customers and is expected to deliver strong commercial synergies by matching Aluminium Rheinfelden's high end, niche product focus with Rusal's global scale low-carbon aluminum alloy production," the press release said.
Rusal plans to develop Aluminium Rheinfelden's assets and "to deliver a new generation of sustainable aluminium solutions that can be produced at scale," while "Aluminium Rheinfelden will continue to operate under its well-known brands," it said.
In announcing the deal, Rusal clarified earlier that it planned to boost production of alloys to 30,000 tonnes per year.
"As part of a well-capitalized business with a global scale, Aluminium Rheinfelden can now build up its footprint in its existing core automotive sector and target new market niches, thus further strengthening our combined market position," Aluminium Rheinfelden CEO Eric Martinet was quoted as saying in the press release.
"Not only does the transaction secure the future of all three business units of Aluminium Rheinfelden, but also, the Company's customers will benefit from Rusal's low-carbon aluminum ALLOW and from the breakthrough inert anode technology, which drives the industry into a new chapter of carbon-free aluminum," Rusal Sales and Marketing Director Roman Andryushin was quoted as saying.
The website of Aluminium Rheinfelden itself contains no information on current production volumes or financial indicators. Aluminium Rheinfelden is a family company whose story began in 1898 when aluminum production was launched in Rheinfelden, Baden, near Europe's first river power station. Today, the company is one of Germany's leading producers of aluminum alloys, semi-finished products, and carbon materials and is a major supplier for the automobile, pharmaceuticals, and metals industries.
Europe continues to be the main region for supplies of Rusal products. Last year, the European Union accounted for 45% of the company's sales. The position of European aluminum consumers concerned about termination of relationships with Rusal following the company's inclusion in the United States' sanctions list in April 2018 was an important argument for the subsequent cancellation of this decision by the U.S. Department of the Treasury. This additionally required Oleg Deripaska to reduce his stake in En+ , which controls Rusal.