Alcoa considers Russian far east plant

A delegation from Alcoa, the world's largest aluminium producer, led by Commercial Development Manager Lawrence Castner has visited Russia's far eastern Khabarovsk to discuss the potential construction of an aluminium factory with key representatives of the local administration. Alcoa is considering the idea of locating a factory in the region that would produce around 300,000 to 350,000 tonnes a year, with the possibility of increasing capacity if the energy resources of the region make this viable.

Alcoa's competitors will do all they can to prevent the company from gaining access to the Russian far east - with its proximity to the crucial Chinese market. In this they may be aided by legislative developments. Parliamentarians are developing a law to limit foreign access to strategically important sectors - something that might force Alcoa to set up a joint venture with a local business, in which the foreign investor would possibly have a minority stake.