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RUSAL and ENERGOPROM Sign a Long-Term Contract for Supply of Graphite Products

OK RUSAL (tickers 486, RUSAL/RUAL and RUAL on the Hong Kong, Euronext and Moscow stock exchanges, respectively), one of the world’s largest aluminium producers, and the ENERGOPROM Group, a leading Russian company specializing in carbon and graphite products, have signed a 5-year contract for the supply of 21,500 tonnes of cathode blocks per year. 

In accordance with the contract, in the period from 2018 through 2022 ENERGOPROM will cover up to 70% of the RUSAL aluminium plants’ total requirement for graphite input materials. The products will be shipped from the Novosibirsk Electrode Plant, the largest of its kind in Russia.

“The long-term security of raw materials supply is one of the priorities for RUSAL which will guarantee the sustainable operation of our enterprises.  Also, the fixed price, which is a condition of the 5-year contract, will allow us to avoid risks related to international suppliers that earlier provided the bulk of graphite products for our aluminium plants”, said Vladislav Solovyev, RUSAL’s CEO.

“This is the first long-term contract in the more than 40 years’ history of our companies’ collaboration. Confidence in the durable demand for our products will help us plan long-term investments in modernization and expansion of our production capacity”, remarked ENERGOPROM’s CEO Victor Nechuyatov.

Cathode blocks are an indispensable component of the aluminium production process and are used for lining the electrolysers’  baths and side walls.

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