UC Rusal and Omen found VolkhOR
UC Rusal and the Israeli Omen High Pressure Die Casting have announced today about closure of the shareholders agreement on the foundation of the joint venture for car components production. VolkhOR joint venture carried on a parity basis will be located at the industrial site of Volkhov aluminum plant. Its annual capacity will be 5,000 tons of car components. The pre-commissioning will be held in September – December 2014. The launch is planned for Q1 2015.
UC Rusal is going to supply to the joint venture 5,000 tons of cast alloys a year with possible enlargement in supplies in the future.
Omen will provide the creation of the modern hi-tech car components production at the highest industrial standards. The project will be financed on a parity basis. Each side will invest to the project by $1 million and the rest of the funds will be raised using bank loans. In 2014-2016, the total investment will be $20.6 million .