Rusal plans to split company to focus on green aluminum market

2021-05-19

May 19, 2021 - Russia's Rusal to demerge its higher carbon assets and change name.

United Co. Rusal International PJSC said it’s planning to split off its higher-carbon assets to create two separate businesses, with one focused on the low-carbon aluminum market.

“Rusal would focus on reinforcing its position as a leading producer of low-carbon aluminum and the new company would concentrate on the development of the domestic market and its growth potential,” the Russian metals giant said Wednesday in a statement.

As part of the changes, Rusal’s management has proposed changing the name of the company to AL+.

Last month, Rusal’s parent said the company has produced aluminum with the lowest carbon footprint as the race for cleaner sources of the metal intensifies. Demand from Europe’s auto industry is driving the development of so-called “green aluminum,” with consumers prepared to pay a premium for metal with a smaller carbon footprint.