According to the data posted at Rusal's official website, the company has announced an agreement with German firm Achenbach to execute a $70mln modernization program at the RUSAL ARMENAL foil mill in Armenia. More sizable than initially planned, the program will allow RUSAL ARMENAL to improve the quality of its foil products and raise the plant's profitability.

The modernization program , which will provide a major upgrade to foil rolling equipment and the establishment of a full production cycle, will result in an increase of the plant's capacity to 25,000 tons of foil per year, including 18,000 tons of highly profitable thin foil of 6-9 micron. Following the completion of the modernization project, RUSAL ARMENAL's share of thin foil production will rise to 2.5% by 2008.

Of the $70mln required to finance the project, $25mln will represent RUSAL's own investments and another $45mln, in the form of a long-term export loan, will be provided by a group of German banks, headed by Bayerische Landesbank.

Installation of new equipment will commence in late October 2004 and will continue, according to the contract signed with Achenbach, for 18 months. It is expected that the first 150 tons of foil will be manufactured by the end of 2005