Rusal Announces Partnership with Chinese Firm to Produce Aluminium-Alloy Cable
06 July 2016 by Staff
Russian aluminium giant UC Rusal announced yesterday that it has entered into an agreement with Chinese aluminium alloy cable firm Hebei Joy Sense Cable Co. (HJSC) to form a joint venture to produce aluminium cable for electrical applications.
According to Rusal, the joint venture will be named JSC RUSAL-HEBEI JOY SENSE CABLE Special Aluminium Products Co. Ltd. Investments. Ownership is to be split fifty-fifty between Rusal and HJSC, with sales and production to occur at HSJC’s facilities in Shijiazhuang, Hebei Province, 190 miles from Beijing. HSJC’s facilities will be modernized to handle the requirements of the new joint venture.
Products intended for production by the joint venture include high-temperature cables for overhead transmission lines made of aluminium-zirconium alloy (made under license from Rusal), and cabling and wiring products for solar and wind energy. The joint venture will also conduct research and development, technical services, and client support. Planned output of the joint venture is 72,000 metric tons of aluminium wire rod per annum, and Rusal anticipates the joint venture’s clients will include firms in China, India, Southeast Asia, and other countries China defines as “Silk Road Countries.”
Rusal indicates that it will be responsible for technology, equipment, technical support, and expertise, while HJSC will focus upon organizational settlements, licensing, and administrative arrangements.
“The project has been implemented within our strategy to extend the collaboration with Chinese partners,” explained Rusal’s CEO Vladislav Soloviev. “The usage of aluminium and its alloys in cable production has been regulated in China by a special standard as of July, 2015. RUSAL and Hebei Joy Sense Cable agreed to use this opportunity to enter the market of aluminium and alloy cable production. RUSAL’s expertise in aluminium alloys production combined with HJSC’s position in the cable products market will generate a strong set of competitive advantages for the newly created joint venture, as well as an excellent positioning for entering the market.”