UC RUSAL Board of Directors approves aluminium production capacity optimisation programme for 2013

UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; Moscow Exchange: RUALR/RUALRS), the world’s largest aluminium producer, announces that its Board of Directors has approved the decision to reduce the primary aluminium production at the Company’s smelters by 300,000 tonnes by the end of 2013.

This decision has been undertaken in order to maintain the Company’s competitive position in the global aluminium market given the current overcapacity, high power tariffs and metal prices downturn.

These actions will be executed following the respective approvals are ratified by Governmental bodies and employment solutions for all affected workers are established. The next steps of the programme will be considered at the further sessions of the Board.

Consequently the announced decision will not deteriorate the social environment and quality of life in these regions. Thanks to subsidies provided by RUSAL in the framework of the federal programme aimed at supporting monotowns, all employees currently at the smelters to be curtailed will be offered alternative employment opportunities. These include being offered either alternative jobs at their current smelters, complete retraining within an employment programme, positions at other plants within the Group with compensation or given they will be offered the opportunity to move to other regions to work on new greenfield projects the Company has under construction in Siberia which have a high demand for qualified workers.

"The situation in the aluminium market in the last 12 months requires producers to rationally approach the utilisation of existing capacities and the commissioning of new ones. The oversupply crisis, which came to the industry following the global 2008-2009 downturn and Eurozone recession, was never completed addressed. Therefore, RUSAL considers it necessary to correct its capacity optimisation plans announced before and cut the annual production of primary aluminium by 300,000 tonnes as early as in 2013", said CEO of RUSAL Oleg Deripaska.