Rusal expects the deal to allow it to source sustainable alumina. Credit: Russian Aluminium Association from Pixabay.

Russian aluminium producer United Company Rusal International (Rusal) has agreed to acquire a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials (HWNM) in a deal worth 1.91bn yuan ($261.6m).

HWNM owns and operates an alumina refinery located in the Chinese province of Hebei, Caofeidian district.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The refinery was commissioned in March 2022 and has a nameplate annual capacity of 4.8 million tonnes of metallurgical grade calcined alumina.

The alumina refinery is claimed to feature modern technology for processing raw materials, advanced consumption indicators and a high degree of automation.

In a press statement, Rusal said: “In accordance with the agreement, Rusal and Hebei Wenfeng New Materials will divide the alumina produced in proportion to their respective equity interests.

See Also:

“Rusal will be able to gain access to alumina at a competitive cost and secure its key raw material supply.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Russian company said the deal will allow it to source sustainable alumina, facilitating enough supply of raw material for its production facilities.

The transaction is subject to approvals from Chinese authorities and consent from HWNM’s creditors, reported Reuters.

Following Australia’s ban on the export of alumina and aluminium ores in March 2022, Russia chose China as an alternative source for alumina. The ban comes in response to the Western-led sanctions against Russia due to its invasion of Ukraine.

Earlier this year, Rusal announced plans to build an alumina production facility with a $4.8bn investment to help reduce raw materials imports.

The proposed project will include four technological lines for alumina production, as well as port infrastructure in Russia’s Baltic Sea port of Ust-Luga.