Further reading re productivity.......RUSAL sees 'fundamental...

Further reading re productivity.......

RUSAL sees 'fundamental changes' in aluminium sector
Thu Oct 16, 2008 5:36pm IST By Aleksandras Budrys

MOSCOW (Reuters) - United Company RUSAL, the world's largest aluminium producer, on Thursday forecast "fundamental changes" in the global aluminium industry as loss-making smelters reduce production and suspend expansion projects.

UC RUSAL, which reported a 6.5 percent jump in aluminium output and revenues of $12.3 billion in the first nine months of the year, said in a statement it intended to strengthen its position in the global metals industry as a result.

Chief Executive Alexander Bulygin said 75 percent of aluminium producers in Europe, the United States and China were operating at below break-even with the metal trading at or below $2,500 per tonne.

"As a result, today the aluminium industry is the only metals and mining sector with such a high concentration of unprofitable production facilities. This will inevitably lead to fundamental changes in the global aluminium industry," he said.

"UC RUSAL intends to take advantage of this challenging time to strengthen its position in the mining and metals industry."

UC RUSAL, majority owned by billionaire Oleg Deripaska, said primary aluminium output rose to 3.3 million tonnes in the first nine months of the year as its Khakassia smelter in Siberia hit full capacity of 300,000 tonnes per year.

Output was also boosted by the commissioning of the Alscon smelter in Nigeria, the launch of new smelting facilities at the company's Irkutsk plant and upgrades at Bratsk, the world's largest aluminium smelter, and other UC RUSAL plants.

UC RUSAL produced 8.4 million tonnes of intermediate product alumina in January-September 2008, up 2.0 percent year-on-year.

Alumina production rose after an upgrade to the railway system and the acquisition of modern rolling stock at the Fria alumina and bauxite complex in Guinea, improvements at refineries in Ukraine and Jamaica and higher output in Ireland.

The company's revenues rose 14 percent to $12.3 billion in the period.

UC RUSAL accounts for about 12 percent of global aluminium production and 15 percent of alumina output. It was founded in March 2007 through the merger of Russia's top producer, RUSAL, with smaller rival SUAL and assets belonging to trader Glencore.

UC RUSAL supplied the following output data, in million tonnes unless stated otherwise:

Jan-Sept 2008 Jan-Sept 2007 Pct change

Bauxite 13.5 13.0 +3.4

Alumina 8.4 8.3 +2.0

Primary

aluminium* 3.3 3.1 +6.5

Casthouse

products 1.7 1.5 +10.8

Foil ('000 T) 54.5 51.6 +5.7

Powders ('000 T) 15.8 15.0 +5.4

Silicon ('000 T) 46.1 41.3 +11.6

* Includes casthouse products

Figures were rounded to one decimal place by UC RUSAL

(Editing by Michael Roddy)