OREANDA-NEWS. November 7, 2011. UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, MICEX: RUALR, RTS: RUAL), world's largest aluminium producer, announces a large-scale modernization programme at its SAYANAL foil mill. Capital investments will reach around USD 7 million.

SAYANAL, Russia's largest producer of foil and foil package, has successfully completed the first stage of modernization including the change of rolling mill's thickness gage and strip profile management system to improve foil's overall quality. First stage investments amounted to USD 1.5 million. Operations were carried out jointly with German company "Achenbach", whose specialists offered the most cost-efficient performance solution.

The second stage of modernization includes the replacement of the rolling mill units effecting productivity, which will enable the mill to increase metal processing efficiency by 5-10% of the total volume.

The modernization of the mill will boost the plant's production capacity and quality of aluminium strip for different industries including construction, decoration, engineering and packaging.

Currently, SAYANAL equipment enables production of 4-6-micron thick foil, which is used for multilayer packaging, production of condensers and in other industries. The production of this foil is considered as one of the most promising in SAYANAL’s development plan, as it is a high value-added product.

“RUSAL's Packaging Division has about 40% of foil market in Russia and we export up to 70% of the foil produced. We have ambitious plans for further development of this business. The high quality of our foil is recognized not only by our Russian and foreign corporate customers but also by retail consumers, demonstrated by high popularity of the "SAYANSKAYA" household foil brand. By improving the quality of the foil and modernizing our production capacities including SAYANAL we expect to substantially increase sales volume”, said UC RUSAL Packaging Division Director Sergey Goryachev.

SAYANAL production capacity is 40,000 tonnes of foil annually. Major consumers are food, confectionery, pharmaceutical, construction, packaging and tobacco industries.