Omen Die Casting and UC RUSAL to establish a joint venture to produce automotive components
Moscow, 20 June 2013 – UC RUSAL (SEHK: 486; Euronext: RUSAL/RUAL; Moscow Exchange: RUALR/RUALRS), a leading, global aluminum producer, and Omen High Pressure Die Casting, which specializes in the production of automotive components from non-ferrous metals, announce the signing of a memorandum outlining details of the creation of a joint venture to produce automotive components.
The JV, which is to be held in equal share (50/50), will be based on a production site of the Volkhov aluminum smelter (VAZ). RUSAL will provide the joint venture with a production and operation space and will supply the aluminum. Omen will in turn create cutting-edge automotive components, in line with the best global standards. The financing will be provided on a parity basis, with the option of external borrowing.
"Automotive component production at VAZ will mark a new page in the history of RUSAL's oldest smelter. The retrofitting of the production site is being made in line with the Company's complex capacity optimization program. Aluminum production at VAZ will be substituted with the production of value added products. We anticipate that the auto components produced at VAZ will be supplied to the promising domestic car market of Russia and CIS," commented Vladislav Soloviev, first deputy CEO of RUSAL.
Omen High Pressure Die Casting was founded in 1946. The company, based in Kibbutz Hatzor, Israel, produces aluminum and brass high-pressure die casting products. It manufactures a wide range of products for various industries and markets including: Automotive, Fire Protection, Telecommunications and others. Omen High Pressure Die Casting is a Tene I portfolio company.
Tene Investment Funds is an Israeli PE fund focused on investment in Israeli industry. Tene invests in established, export and growth oriented companies with leading global market positions.
Among others the fund's portfolio includes investments in Gazit Industries – a leading manufacturer of extruded plastic products and acrylic boards, and SCR Engineers – a global provider of innovative electronic and computerized dairy farming systems. For more information regarding the fund please see www.tenecapital.com