Alcoa in Russia: Figures and Facts
February 1, 2005 - Alcoa completed the acquisition of the Samara Metallurgical Plant (currently - ZAO Alcoa SMZ) and Belaya Kalitva Metallurgical Manufacturing Association (currently - ZAO Alcoa Metallurg Rus: in July 2007 it was reorganized by joining JSC Alcoa Metallurg Rus) from Rusal for $257.5 million.
In order to improve the product quality and raise the production efficiency to the international standards required by large customers in Russia and abroad, Alcoa upgrades the production and implements new technologies at Alcoa SMZ and Alcoa Metallurg Rus.
In addition to equipment purchases and upgrades, substantial funds are invested in Environment, Health and Safety System improvement, Alcoa Business System implementation, and employee training and development.
2005 - 2008 investments exceed $490 million and target aligning the Russian production facilities with Alcoa’s best global standards
- 2005 - $16 million
- 2006 - $97 million
- 2007 - $178 million
- 2008 – about $200 million
Since 2005 total investments in Alcoa Russia (including the acquisition) reached nearly $750 million.
PRODUCTION FACILITIES IN RUSSIA
ZAO Alcoa SMZ is Russia’s largest producer of fabricated aluminum. Alcoa SMZ accounts for about 40% in the mill products market.
Alcoa SMZ is:
- 1,380,000 square meters of land
- 680,000 square meters under roof
Alcoa SMZ has 3 business units:
- Casthouse
- Mill products
- Extrusions (includes forgings production)
- the largest extrusion press in Russia
- the largest forging press in Russia
ZAO Alcoa Metallurg Rus (AMR, the legal successor of Belaya Kalitva Metallurgical Manufacturing Association) is the one of Russia’s largest producers of fabricated aluminum. The share of ZAO AMR in the mill products market is nearly 10%.
Alcoa Metallurg Rus is:
- 861 500 square meters of land
- 277 550 square meters under roof
AMR has 3 business units:
- Casthouse
- Mill products
- Extrusions (includes a forgings-extrusions shop)
PRODUCTS
Alcoa SMZ makes a wide range of flat-rolled, extruded and forged products: coils, including beverage can stock (body, end and tab), food can stock, lacquered strip, profiles, panels, pipes, forgings, incl. large-scale ones
AMR makes a wide range of flat-rolled, extruded and forged products: coils, plate, panels, profiles, pipes, forgings.
Customers in packaging, aerospace, automobile, building and construction, oil & gas widely use the products of both locations and their capacity to design and develop new solutions.
Alcoa Russia facilities at BK and Samara have some very prestigious customers such as the United Aircraft Corporation and their subsidiary plants such as Knaapo, Aviastar, VASO are manufacturing Aero programmes for Superjet, Ilyushin and others. Our customer in the Space programme is Progress.
The use of cans to package beverages is exploding in Russia with Rexam, our cansheet customer, enjoying an unprecedented growth.
We see new projects in aluminium in the oil and gas Industry with Transneft and others. International brands such as Bosch Siemens which are present in Russia, are also using our products and services.
INVESTMENTS
Based on the outlook for the Russian and global aluminum markets, Alcoa invests in the casthouse, mill and forging capacities in order to meet the demand of the most rapidly developing sectors of the Russian economy.
The investment program at ZAO Alcoa SMZ includes:
- Casthouse: development of high-quality ingot production for can stock and fabricated aluminum in aerospace, building and construction, food industry.
- Extrusions: development of fabricated aluminum production for oil and gas, building and construction.
- Forgings: development of large-scale forgings production for aerospace, oil and gas.
- Mill Products: development of can stock production, tin stock and lacquered stock for aerospace, building and construction, food industry.
The investment program at ZAO AMR includes:
- Casthouse: development of high-quality ingot production for aerospace, automotive.
- Forgings: development of forged wheel production
- Mill products: development of plate and sheet production for aerospace
QUALITY CERTIFICATES:
ZAO Alcoa SMZ has the following certificates:
- BSI certificate on quality management system ISO 9001 and AS 9100;
- BSI certificate on quality management system ISO/TS 16949;
- BSI certificate on environmental management ISO 14001;
- Certificate of Aviation Register of Interstate Aviation Committee on aerospace materials
- NADCAP certificate on thermal treatment processes of aerospace materials
- NADCAP certificate on non-destructive control of aerospace materials
- Certificate of Russian Maritime industry of Shipping on recognition of shipbuilding materials manufacturer
- Certificate of American Bureau of Shipping on production of alloys 5083 and 5086 for shipbuilding materials
- Certificate of Det Norske Veritas (DNV) on production of alloys 5083 and 5086 for shipbuilding materials
- TUV Certificate for production according to European Directive on pressure equipment PED 97/23/EC
- Certificate of Federal Technical Regulation and Metrology Agency (former GosStandart of Russia) on the metrological department
- Certificate of Federal Technical Regulation and Metrology Agency on the testing laboratory
- Certificate of Aviation Register of Interstate Aviation Committee on the testing laboratory
ZAO AMR has the following certificates:
- BSI certificate on quality management system BS/EN9100:2003, ISO 9001:2000 and EN 9104:P1 as an aerospace supplier
- Certificate of Aviation Register of Interstate Aviation Committee on aerospace materials
- Certificate on production of aluminum and aluminum alloys according to GOST R ISO 9001-2001 standard
- Certificate on production of plate according to specifications of American Bureau of Shipping (ABS)
- Certificate of Det Norske Veritas (DNV) on production of sheet and plate (NV 5083 0, H112, H116, H321 below 12 mm width)
- NADCAP certificate on ultrasound control
The location is preparing for the certification in Environmental Management.
CORPORATE SOCIAL RESPONSIBILITY ACTIVITY
Since 2005, Alcoa Russia and Alcoa Foundation have invested in the communities about USD 2.7 million. (Moscow region – $ 0.4 million, Samara region – $ 1.2 million, Rostov region – $ 1.1 million).
Alcoa Russia and Alcoa Foundation focus on programs in education and sustainability. These programs include the Alcoa Foundation Technical Education Program in three leading technical universities and Alcoa Foundation educational programs in conservation and sustainability for youth.
In addition to the above long-term activities supported by Alcoa Foundation, ZAO Alcoa SMZ and ZAO AMR also implement various projects to address the local community needs. Most of these projects involve Alcoa volunteers. As part of Alcoa Ten Million Trees program, Alcoa Russia employees planted about 6000 trees.
The combined community investments in the Samara region in the period of 2005 to 2008 amount to more than USD 1.2 million.
Programs in the Samara region:
- Alcoa Foundation Technical Education Program in Samara State Aerospace University (SGAU): scholarships to students at engineering faculties, development stipends for young faculty members, technical upgrades of lecture rooms and laboratories.
- Alcoa Foundation conservation and sustainability program “We are in Charge of the Future” for middle schools and youth organizations in the Kirovsky district of Samara.
- Children’s cardiac care program “Heart to Heart” supported by Alcoa Foundation.
- Alcoa SMZ community projects: English language summer camps, assistance to the Center of Special Education for children with special needs, refurbishment and landscaping works in the Metallurg district, support to veterans and other projects.
The combined community investments in Belaya Kalitva and the Rostov region in the period of 2005 to 2008 amount to more than USD 1.1 million.
Programs in Belaya Kalitva and the Rostov region:
- Alcoa Foundation Technical Education Support Program in Donskoy State Technical University (DGTU): scholarships to students at engineering faculties, development stipends for young faculty members, technical upgrades of lecture rooms.
- Alcoa Foundation conservation and sustainability program “We are in Charge of the Future” for middle schools in the Belaya Kalitva region.
- ZAO AMR community projects: assistance to the Cossacks’ Cadet Boarding School, support to the center for social rehabilitation, refurbishment and landscaping works in the city, support to veterans and other projects.
ALCOA IN RUSSIA: FIGURES AND FACTS
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Alcoa Russia Locations
Alcoa SMZ, ZAO
Fabricating facility in Samara
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Alcoa Metallurg Rus, ZAO
Fabricating facility in Belaya Kalitva
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Alcoa SMZ, ZAO, Separate entity
Administrative office in Moscow
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