Aluminum Metallurgist Rus

"Aluminum the Metallurgist Rus" is their to one the enterprises for production of aluminum semi-finished products, largest in Russia.

As of 2012 the share of the company in the Russian market of rolled aliminium made about 10%.

Assets

AMR Ltd for 2012 it:

• the total area of the land plots - about 861,500 sq.m.
• the total area of buildings and constructions - 277,550 sq.m.

AMR Ltd has 4 business divisions:

• Foundry production
• Rolling production
• Press production (the forge and press workshop is its part)
• Crockery production (earlier – Kalitva Plant LLC)

History

2015: Alcoa sold 100% of shares of AMR Ltd of "The Stupino titanic company"

At the end of March, 2015 Alcoa sold 100% of shares of Alkoa Metallurg Rus Ltd (till July, 2009 - "Belokalitvinsky metallurgical production association"). Two of these Alcoa plants purchased at Rusal in 2005 for $257 million^[1].

Buyer of belokalitvinsky metallurgical production association (Alkoa Metallurg Rus Ltd; AMR, the Rostov region) acted as Laynen Ltd. The CEO of Laynen Ltd Vladimir Chertovikov reported to Izvestia that the transaction was closed. "The Stupino titanic company" became the end buyer of the enterprise in Béla Kalitve.

— Laynen is affiliated enterprise of the Stupino titanic company (STK) — Chertovikov says.

In January, 2015 the Federal Antimonopoly Service satisfied the petition of Laynen Ltd for purchase of 100% of stocks of Alkoa Metallurg Rus Ltd. By data SPARK-Interfax, 100% of STK belongs Nikolay Timokhinu, Laynen with the authorized capital of 10 thousand rubles is created in August, 2014.

— The plant in Béla Kalitve turns out products in our profile, STK produces about 100 t of products from titanium monthly for the aviation industry. On AMR there are interesting technologies and the equipment which use will give synergy effect to both enterprises. We are going to increase production in Kalitve to increase deliveries to export. Now loading of the plant makes about 20 thousand tons a year. Crisis to us not a noise, on the contrary, because of low ruble costs is our chance to enter the western markets — Vladimir Chertovikov explained to Izvestia the reason of purchase of the plant belonging to Alcoa^[2].

Alcoa assures that sale of AMR is connected with the fact that the plant does not fit into the new strategy of the company which is accepted in 2013. According to it, Alcoa should strengthen positions in the main markets of growth: automobile, aircraft industry and market of home appliances and packaging.

— The decision on sale of the enterprise has no relation to sanctions of the USA against Russia, any actions for business transformation considered by Alcoa corresponds to the strategy of the company within which it concentrates the development in the markets and products with a high potential of growth — the representative of Alcoa told Izvestia.

At the same time in the spring of 2014 the president and the chief executive of Alcoa Klaus Kleinfeld refused a trip to the St. Petersburg International Economic Forum (PIEF-2014). As representatives of the press service of the company taking the third place among the largest aluminum producers in the world told journalists then, such decision was made because of pressure from U.S. authorities.

However, as more than once analysts, many owners of the American companies having assets in Russia claimed long ago try to minimize contracts and to sell local assets.

— Russia for Alcoa was the perspective, but not the most important market — notes one of them.

Representatives of Laynen and Alcoa refused to call transaction amount.

The deputy chief editor of the Metallosnabzheniye I Sbyt magazine Leonid Hazanov believes that the cost of AMR can equal to the amount which Alcoa invested in the enterprise in the form of investments from the moment of purchase in 2005, i.e. about $160 million Alcoa, according to him, successfully upgraded the enterprise, but now it is underloaded.

— For the Stupino company which delivers products of the aerospace industry of Russia the plant in Béla Kalitve will give vent on new clients — Hazanov says.

Alcoa purchased the Samara steel works (Alkoa SMZ) and Belokalitvinsky metallurgical production association (Alkoa Metallurg Rus) in 2005 for $257.5 million from Russian aluminum of Oleg Deripaska. The general investments of Alcoa into acquisition and upgrade of the plants made more than $850 million for the beginning of 2015. On SMZ $450 million, were the share of the plant in Kalitva — $160 million.

— In 2014 the plant in Béla Kalitve for the first time has come to profit — the representative of the company reported Izvestia.

The plants in Samara and in Kalitva release rolls, including a can tape, a konservny tape, the colored film, sheets, profiles, panels, pipes, stampings, forgings, ware.

The company prepared the transaction long ago. So, AMR till October, 2014 owned 100% of stocks of the Samara Alkoa SMZ Ltd, the second Alcoa plant in Russia. In September Alcoa reduced authorized capital of AMR to 3.14 billion rubles from 8.83 billion rubles, having transferred stocks SMZ to head Alkoa Rus Investment Holdings LLC.

Alcoa is going to receive in 2016 due to optimization/review of rolling capacities $1 billion additional revenue worldwide. In 2014 the company already closed two rolling plants in Australia and sold three European enterprises.

2012: Active development and investment program

As of 2012 AMR Ltd releases the wide range of sheet-rolling, press and forge and stamped products:

• sheets, plates, panels;
• profiles, bars, pipes, stampings, forgings;
• aluminum ware with non-stick coating, aluminum opaque ware, special aluminum ware (flasks, cans, etc.) under the Kalitva trademark using the latest technologies and non-stick coatings of world leading manufacturers - Du Pont and Akzo Nobel.

Customers in packaging, aviation, space, automobile, construction, oil and gas and other industries widely use products of both enterprises and their opportunity for design and product development.

The plants in Samara and Béla Kalitve work with the participants of the aviaprogram for production of superliners and the Ilyushin airplanes entering into the United Aircraft Corporation (UAC) - KNAAPO, Aviastar, VASO.

In the field of production for packaging industry quickly develop and such clients of Alkoa Russia as Reksam increase volumes.

There is a work on implementation of new projects in an oil and gas sector with Transneft and other companies. The international brands, such as Bosch of Siemens, also use products and services of the Russian capacities of Alkoa.

The investment program implemented on AMR Ltd includes:

• Foundry production: development of production of high-quality ingots for aviation, space, automobile products.
• Forge production: development of production of stamped automobile wheels.
• Rolling production: development of production of sheets and plates for the aerospace industry.

Notes