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The proposed venture would be sited at one of Rusals smelters in western Russia to supply automotive diecastings to OEMs there and in the CIS

Rusal, Diecaster Plan Automotive Joint Venture

June 3, 2013
50-50 joint venture Rusal to supply liquid aluminum alloys Omen to produce “cutting edge” parts

The world’s largest aluminum producer, UC Rusal, signed a memo of understanding with Omen High Pressure Die Casting to establish a joint venture that will produce aluminum automotive diecastings for automakers in Russia and the former Soviet states.

Rusal controls nearly 10% of the world’s aluminum capacity and 10% of the world’s alumina capacity, with integrated operations in Russia and ten other countries.

Omen High Pressure Die Casting produces dozens of different castings for automotive applications, including powertrain, steering components, brackets, and brake systems.

Omen High Pressure Die Casting produces aluminum and brass high-pressure diecastings at Kibbutz Hatzor, Israel. Among its automotive products are oil pump covers, fuel pump covers, oil pan support products, water outlets, cylinder head covers, water inlets, bracket AC compressors, water pump covers, valve covers, rocker arms, crankshaft support, and oil pump bodies.

The 50-50 joint venture the two companies propose would be sited at one of Rusal’s Aluminium Division West smelters in Russia, likely at Volkhov or Nadvoitsy, which are designated for casting automotive aluminum alloys.

Rusal will supply liquid aluminum alloys and Omen produce “cutting-edge automotive components,” according to a statement.

The cost of the venture was not announced, though Rusal noted the financing would be shared equally, with an option of external investment.

A final decision to proceed with the project will be made by mid summer.

‘The launch of the automotive components production joint venture is in line with our stated strategy to switch production at our Aluminium Division West smelters to value-added products, providing an excellent development opportunity in a challenging market,” stated Alexey Arnautov, UC Rusal’s director for Aluminium Division West. “The Division's smelters currently produce value-added products for Russia’s automotive industry, which has experienced strong growth in the last few years. This is a trend we expect to continue over the next 7-8 years.”

About the Author

Robert Brooks | Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries. His work has covered a wide range of topics, including process technology, resource development, material selection, product design, workforce development, and industrial market strategies, among others. Currently, he specializes in subjects related to metal component and product design, development, and manufacturing — including castings, forgings, machined parts, and fabrications.

Brooks is a graduate of Kenyon College (B.A. English, Political Science) and Emory University (M.A. English.)