RusAl, the world's largest aluminum producer, has signed a letter of intent to buy a stake in the sales and marketing subsidiary of China North Industries Corporation (NORINCO), which operates on the Chinese primary aluminum market, RusAl said on Monday.
The letter of intent was signed during a visit by Russian President Dmitry Medvedev to China. The agreement also provides for NORINCO's investment in the high-tech production capacities of RusAl's Siberian smelters, RusAl said.
"The implementation of these investment plans will make it possible to expand the Russian capacity for the manufacture of products with high-added value and increase exports of Russian aluminum output to China and other Asian countries," RusAl said.
RusAl expects to increase its sales in Asia by 50 percent by the end of 2010, which amounts to 30 percent of the company's total sales.
Under a long-term contract between the companies, RusAl will deliver up to two million tons of aluminum alloys worth more than $4 billion per year to Asian markets from the company's Siberian smelters.
In November 2009, RusAl signed an agreement with NORINCO to supply 1.68 million tons of RusAl's aluminum to the Chinese company by 2016.
MOSCOW, September 27 (RIA Novosti)
