Rusal, the Russian aluminum company, plans to continue building its newest Siberian plant after generating a significant amount of revenue upon the introduction of better aluminum prices.
The company has consistently made $434 million in profit this year, nearly three times as much as it did in 2016, reinforcing its status as second-biggest aluminum production enterprise in the world. The improvement is mainly due to more sales and raised prices of the versatile metal. Its supply may struggle to appease demand in the next quarter, however.
Riding on its success, Rusal declared it would restart operations at its smelting plant in Taishet, which the board of directors has agreed to finance. Rusal has received a total of $38.5 million from them, a modest but sufficient amount for the job.
The company sees this as a great triumph, as the Taishet smelter construction began ten years ago but couldn’t be finished due to lack of funds and aluminum price reduction.
With Rusal’s two smelters in Siberia, En+, the Russian energy giant, expects Rusal to grow its production capacity one million tonnes more by 2022. En+’s profits before taxes and interest in 2016 was $2.3 billion, of which $1.5 billion Rusal contributed to. En+’s alternate companies contributed to the remaining $822 million.
Rusal experienced a more than 5% increase in demand annually, hiking it up to fifteen tonnes in the first quarter of 2017. Worldwide aluminum supply increased by almost 8% to just short of fifteen tonnes, indicating the aluminum market is where it should be.
Taking into account price raises and demand increases, the aluminum industry will likely experience continued success in the years to come.