Russia Rusal Inks Deal to Produce New Power Cables with Federal Grid

SINGAPORE, June 22 -- Russian aluminium producer UC Rusal and the Federal Grid Company of Unified Energy System, the operator of Russia's national grid, have signed an agreement to manufacture new types of cables for overhead power transmission lines, the companies said in a joint statement on Friday.

Rusal will participate in the building of a plant to make the new types of cables and accessories associated with them. The new plant will be put into operation in the second half of 2011.

There were no capacity details provided for the plant as yet.

The role of FGC UES will be to enter into a long term contract to buy equipment from the new factory in accordance with FGC's demand, and then help develop the new factory further as FGC implements modernization programmes at its facilities.

The project is intended to produce high temperature cables, cables with improved aerodynamic characteristics, and vibration resistant self-damping cables from aluminium and aluminium alloys.

The use of the new cables will help prevent power outages during unfavorable weather conditions, the companies said. At present these types of wire are widely used in other countries in power transmission lines in regions with difficult weather conditions, but they are not produced in Russia.

Vladislav Soloviev, the first deputy CEO of UC Rusal, said he expected this joint project to "provide a powerful impetus for the creation of new high-tech production facilities in Russia, increasing sales of aluminium in the domestic market while at the same time, providing modern equipment that will significantly improve the reliability of the country's power grid, something that all electricity consumers will benefit from."