Related News

The European Bank for Reconstruction and Development (EBRD) has lent Alcoa, the world’s largest supplier of manufactured aluminium parts, US$75mn to modernise two aluminium plants which the group bought earlier this year as part of its first major investment in Russia.

The bank remains lender of record for the full amount. Some US$25mn has been syndicated to HSBC Bank USA, under an EBRD A/B loan structure.

Alcoa will use the EBRD’s five-year loan to refurbish the two plants, recently acquired as part of a US$257mn investment, in Samara, in the Volga region 800km southeast of Moscow, and at Belaya Kalitva, in the Rostov region 800km south of Moscow.


These plants, which operate in the higher value-added segment of the Russian aluminium sector, once played a key role in providing fabricated aluminium for use in the Soviet aerospace industry.


The purpose of the upgrade is to bring about major environmental improvements, make more efficient use of energy, broaden the product range and improve quality standards.


The company has committed to an environmental action plan whose goals include reducing air emissions, cutting water consumption and improving the treatment of waste water. The surge in world oil prices is increasing demand for aluminium products as vehicle and aircraft manufacturers seek lighter parts to lower fuel consumption, and Alcoa’s Russian plants are well placed to meet the growing needs of the European aircraft industry, EBRD first vice-president Noreen Doyle says.


The EBRD is the single biggest financial investor in Russia