Rusal and China Hongqiao consider cooperation on aluminum processing

Rusal expressed its intention to cooperate with China's Hongqiao Group (Hongqiao) on the aluminum processing business during its recent visit to the company, according to the Group's website. A delegation of seven RUSAL representatives assessed the meeting as an opportunity to strengthen ties with China Hongqiao and create a platform for both parties to interact and exchange ideas.

Hongqiao Group, based in northern China in Shandong province, is the second largest aluminum producer in the country. At present, Hongqiao is making every effort to transform and modernize its business model and is committed to long-term development in aluminum processing. For the Chinese Group, cooperation with Rusal is interesting due to the rich experience and advanced technologies of the Russian aluminum producer. This will allow both companies to cooperate with each other, to strengthen their individual competitive advantages.

Aluminum prices have dropped 13 percent in the past six months, and Chinese manufacturers are looking to maintain their position in the business. The transportation and construction industries together account for over 50 percent of China's total aluminum consumption. Thus, the development of these industries will have a significant impact on Chinese demand for aluminum. Urbanization, along with rising urban incomes, is expected to spur growth in China's transport and construction industries, thereby boosting demand for aluminum.

At the end of the meeting, the Group announced that it will continue to strengthen its industrial ties in areas such as "Integration of Aluminum and Power" and "Integration of mining and processing businesses" to consolidate its leadership in the Chinese aluminum industry and generate significant profits and long-term returns for shareholders.