The Chinese plant’s existing capacity is currently 9,300 mt/y of cathode blocks and UC Rusal plans to increase this to 20,900 mt/y by 2010. The total investment in the plant’s development is is estimated at more than $20 million.

The Baoguan plant, located 600 km from Beijing, was built in 2001. It specializes in production of cathode blocks, which are a key component of the electrolytic cells required to produce aluminum. The Baoguan plant is now the second asset owned by UC Rusal in China following the purchase in April 2006 of a 15,000-mt/y cathode plant in the Linshi district of the Shanxi Province. Products from the Chinese plants meet the demand for cathode blocks from UC Rusal’s smelters in Siberia. Current cathode producing capacity supplies about 30% of the company’s needs and the Baoguan expansion project will enable UC Rusal to raise this up to 60%.

The Russian aluminum conglomerate also plans to completely modernize the Alscon smelter in Nigeria so it can reach its full capacity of 197,000 mt/y in 2010. The investment in the smelter’s modernization, including dredging of the Imo River, will amount to approximately $300 million.

In February 2007, UC Rusal acquired a majority stake in Alscon and immediately began a large scale modernization program of the smelter, which has been out of operation for eight years. The modernization program includes completing the construction of the smelter, as well as upgrading the existing production technology.