UC Rusal completed the construction of a 120,000-tonne casthouse at the Boguchansky aluminum smelter (BoAZ), which will produce alloys for the automotive industry.
According to IHS Markit research, the global automotive production will grow to 110 million cars by 2025, adding 15 million cars to production in 2019. In addition to production growth, an increasing amount of automotive manufacturers are lightweighting their cars and trucks, which continues to drive demand for aluminum. Foundry alloys demand in particular is coming from electric vehicles, where the use of primary aluminum foundry alloys may exceed 40 kg per car.
Given the growing demand in the automotive industry around the globe, Rusal determined that it was the perfect time to expand its production capacities. The new Properzi ingot production line at BoAZ has been designed to help the company meet meet the demand for the foundry alloys for the automotive industry. The company expects the largest demand for primary aluminum foundry alloys to come from from Germany, Japan, the U.S., Turkey, South Korea, and other countries.
“The alloys produced at this smelter are in high demand in both domestic and international markets,” said Evgenii Nikitin, CEO of Rusal. “Therefore, we are confident that the launch of the new cast house will enable us to increase our clients and supply of these high-tech alloys to the automotive industry.”
The first metal is expected to be produced at the new casthouse in the second half of 2019. This comes on the heals of the start up of the first potline at the BoAZ smelter, part of the Boguchansky Energy and Metals Complex (BEMO), a joint venture with RusHydro. The BoAZ smelter has a capacity of 298 thousand tonnes of aluminum per year.
In addition, the smelter has been constructed to meet the company’s health, safety, and environment policies. For example, Rusal has financed the construction of accommodations for employees at the smelter, as well as in the local infrastructure at Tayozhny. The town will also be provided with two preschools, a school, and a hospital.