. Last Updated: 07/27/2016

RusAl Building $700M Smelter

Russian Aluminum, the nation's largest and world's second-largest producer of primary aluminum, has awarded a $700 million contract to Canadian Hatch Group to build a production unit at its Sayanogorsk plant, RusAl said Tuesday.

"This will be the first major aluminum smelter construction in Russia in 15 years," RusAl said in a statement.

The plant will enable Sayanogorsk to raise output by 270,000 metric tons of aluminum per year by the first half of 2006, RusAl said. Sayanogorsk produced 413,865 tons of aluminum in 2002.

The Canadian engineering firm will build two new potlines, including 384 electrolyzers at the Siberian smelter, the third largest in the country.

Design work on the project will begin in August. Initial site work is expected to start in March 2004.

Sayanogorsk may increase its output by a further 80,000 tons to 90,000 tons per year, RusAl said in a separate statement also issued Tuesday, without giving any details of when this may happen.