Basic Element and NORINCO recently signed a framework agreement for planned cooperation allowing for the joint completion on projects in the engineering, mining and metal sectors.
The agreement will increase both companies’ economic and trade cooperation to more than $1 billion within three years.
UC RUSAL, under the new agreement, will expand its export of aluminum products to China through sales to North United Aluminum (Shenzhen) Co. Ltd., which is a joint venture company established by the partners in China on the basis of Shenzhen North Investments, a NORINCO subsidiary trading company.
Additionally, UC RUSAL, which shares the same CEO with Basic Element, Oleg Deripaska, will study the feasibility of inviting NORINCO to supply anode production equipment for the Taishet aluminum smelter, which is currently under construction.
En+ Group, whose president is also Deripaska, and NORINCO have agreed to discuss NORINCO’s participation in a project to create Russia’s largest aluminum rolling mill at the Krasnoyarsk metal plant, while also developing a long-term cooperation method for resource development, including the joint development of nickel, copper and other resources in Russia and abroad.
NORINCO and Russian Machines will develop its partnership in engineering, in particular through sharing technological developments and certification. This will include a measured extension of cooperation from the supply of components for railway wagons to the joint design, manufacturing and provision of maintenance services, while also providing for the purchase of up to 15,000 sets of wagon components from NORINCO by Russian Machines.
“We are pleased to announce that we’ve reached a new level of cooperation with NORINCO, not only by means of expanding the scope of our joint projects, but also by investing in high-tech and innovative production which we intend to develop jointly,” Deripaska said. “This agreement represents another step forward in the development of our economic relations with China, one of the most strategically important markets for Russia. Sino-Russian trade turnover is already worth over $80 billion. I am sure our new projects will help this figure to grow further.”