Russian Federation aluminium giant UC Rusal said yesterday it plans to split into two units and separate its high-carbon assets as a part of its continued push to reach carbon neutrality by mid-century.
The firm said in a press release that Rusal’s operations would be divided into two parts, with Rusal retaining low-carbon aluminium production while a second company yet unnamed would focus upon cultivating the domestic market for aluminium products.
Rusal says this change will set the table for increased development of its ALLOW brand of low-carbon aluminium, which utilizes cutting-edge inert anode technology to achieve zero-carbon aluminium.
In addition, Rusal says it will be changing its name as well, transitioning to AL+. The new name is a nod to the firm’s commitment to responsible aluminium production, as it will be the world’s premier producer of low-carbon aluminium.
Meanwhile, the as-yet-unnamed new firm to be spun off from Rusal will take on the alumina refineries in Achinsk, Bogoslovsk, Urals, and Pikalevo and the aluminium smelters in Bratsk, Irkutsk, Novokuznetsk, Volgograd, and Kandalaksha. The company plans to replace most of the electrolysis lines at those plants with new pre-baked smelting equipment.
Rusal’s chairman Bernard Zonneveld elaborated upon the reasoning behind the move.
“As the sustainability movement gathers pace around the world, the proposed demerger we are announcing today would represent the next chapter in our journey and is firmly in the interests of both companies; enabling AL+ to focus on its Net Zero priorities, further promoting its industry leading low carbon brand ALLOW, while the newly created company would concentrate on delivering a long term modernisation programme. The proposed transformation would allow both companies to unlock their full potential. I believe that the proposed separation of assets with different carbon footprint will open the door for future shareholder value creation and will accelerate growth opportunities”.
“Today marks a bold new era for our Company, which during its last 20 years, has come a long way from a primary aluminium producer to a preferred supplier of high-quality, sustainable VAP products for leading global brands,” explained Rusal’s general director Evgenii Nikitin. “This transformation represents our commitment to our core values and environmental stewardship progress as we continue along our journey as a clean, low carbon, transparent aluminium and VAPs producer. Sustainable growth is the only possible basis for the development of industries around the world and we will continue the implementation of our ambitious ESG strategy.”