OREANDA-NEWS. UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; Moscow Exchange: RUALR), a leading global aluminium producer, announces the start of its powder business modernisation programme.

The programme, with a total investment set to reach USD52 million, will renovate the powder metallurgy plants in Volgograd and Shelehov. The programme aims to increase production of aluminum powder from 20k to 25.5k tonnes per year and expand the Company's market share in the Russia and CIS market from 54% to 76%. The program will be implemented from 2014 through to 2022.

RUSAL is investing in the development of modern dry and wet grinding technology that will allow the Company to penetrate the aluminum paste segment. Alongside this, the Company will also invest in the development of new technology to reduce powder production costs, to produce new types of gas developing agents used in the manufacture of aerated concretes, and high-tech pigments for coatings.

'Our powder business has good prospects and the announced long-term investment programme will enhance its efficiency. Modernisation and new equipment will allow RUSAL to increase its market share in powders and to take advantage of the potential that the market offers,' commented Alexey Arnautov, UC RUSAL's Deputy Director for New Projects.

Key consumers of aluminium power are metallurgy, chemicals, construction, space, and military industries. Aluminium powder has numerous applications, including foamed concretes, plastics, solar panels and blasting agents.