MOSCOW, May 19 (Reuters) - Russian aluminium producer Rusal said on Wednesday that it would demerge its higher carbon assets into a separate company as part of its goal to achieve carbon neutrality by 2050 and will change its own name to AL+ as part of the process.
Hong-Kong listed Rusal is the world’s largest aluminium producer outside China which mainly uses hydropower for its production.
AL+ will keep 6 aluminium smelters, 6 alumina smelters as well as the main mining assets and production of aluminium foil and car wheels in Russia and abroad to focus on the production of low-carbon aluminium.
The assets it separates - 5 older aluminium smelters, 4 alumina refineries and two bauxite mines in Russia - will form a new company, yet to be named, which will focus on upgrading its technology.
The restructuring will leave 3 of four of those smelters facing a 10-year technology upgrade, which will start this year and for which investments will peak in 2022-2027, within the new separate company.
En+, Rusal’s parent company, said in a statement that the new separate company should be a public one, listed in Moscow.
It also wants shares of the new company to be allocated between all Rusal shareholders, but the final decision has yet to be made. (Reporting by Polina Devitt; additional reporting by Anastasia Lyrchikova; editing by Elaine Hardcastle)