MOSCOW, April 11 (RIA Novosti) – Russian aluminum giant RusAl and Israeli auto components firm Omen High Pressure Die Casting (Omen) have signed a memorandum to create a joint venture in Russia to produce aluminum vehicle parts, RusAl said on Thursday.
The JV, which is expected to operate on a 50/50 basis, will be based on a production site at one of RusAl’s Aluminum Division West smelters. RusAl will supply liquid aluminum alloys and Omen will create cutting-edge automotive components production meeting international standards.
The financing will be provided on a parity basis, with the option of external lending. Details of the project will be worked out by the two companies in the next three months.
“The launch of the automotive components production joint venture is in line with our stated strategy to switch production at our Aluminum Division West smelters to value-added products, providing an excellent development opportunity in a challenging market,” said Alexei Arnautov, RusAl’s director for Aluminum Division West.
The JV’s auto components will be supplied to carmakers in Russia and the CIS.
Founded in 1946, Omen produces aluminum and brass high-pressure die-cast products including oil, fuel pump and cylinder head covers and rocker arms, according to data posted on RusAl’s website.