Moscow, 13 November 2003– Russia’s largest brewing company, Baltika, and the leading Russian aluminum can producer, ROSTAR, owned by RUSAL, announced today the signing of a six-year $270 million supply contract.   

According to the agreement, ROSTAR will provide Baltika with cans in volumes covering 50% of the brewery’s aluminum packaging needs. According to the agreement, all 10 Baltika varieties of canned beer in cans will use ROSTAR cans.  

Signing of the agreement was made possible thanks to the joint efforts of the two companies to boost the consumption of canned beer.  Today 12% of all beer produced in Russia is canned, compared with 0.4% in the beginning of 1999. The share of canned beer in the European market currently amounts to 23-25%, meaning that Russia’s market has some room for growth.    

The growing demand for aluminum cans, especially for canned beer, will be increasingly metby domestic production. RUSAL, ROSTAR’s parent company, has already made significant investments in increased production, investing more than $200 mln in the period between 1997 and now. At present, ROSTAR supplies 50% of the domestic demand for beer cans and its share will grow with the launch of its new plant in Vsevolzhskin December’2003. 

Combining efforts of both leaders in their respective industries stimulates the growth of the aluminum-canned beer sector not only in Russia (Baltika’s share of the Russian market is 30%) but also internationally. Currently, Baltika’s canned beer is exported to 28 countries around the world. 

Baltika and ROSTAR plan to continue their cooperation in joint promotion projects to popularize canned beer. In particular, beginning from 2004 until 2009, the companies will cooperate on marketing and advertising events to promote Baltika’s beer in cans in Russia and abroad.   

About Baltika 

 Baltika brewing company produces 39 varieties of beer, 10 of which are in aluminium cans. There are three barreling lines at the Baltika brewing plants (two lines are in St Petersburg and one line is in Tula), which barrel beer into 0.5 liters cans. Their capacity is 60,000 per hour. Total investments in the production lines were $16.3 mln.

About ROSTAR  

ROSTAR company is Russia’s leading producer of aluminium beverage cans and ends, with a production capacity of 1.32 bln cans and 1,5 bln ends per year. ROSTAR production accounted for 41% of the Russian beverage can market in 2002. Located in Dimitrov, near Moscow, ROSTAR plant produces cans of 0.33L and 0.5L volume as well as SOT-ends. Built in 1998, ROSTAR is wholly owned by RUSAL. ROSTAR’s production and quality control systems are ISO 9001 certified and the environmental management standard is ISO 14001 certified.

About RUSAL

RUSAL, a world leader in aluminium production was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia's primary aluminium output and 10% of the global primary aluminium output. RUSAL is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. RUSAL is headquartered in Moscow.

For further information:
www.RUSAL.com
Eugenia Harrison, Moscow, +7 095 720 5170, or zharrison@RUSAL.ru; Fred Harrison, London, +44 (0) 20 7431 7517, or fharrison@ansdellconsult.com; Stan Neve, New York, +1 212 333 3810, or sneve@brunswickgroup.com

www.BALTIKA.ru

Alexey Kedrin

+7 812 326 66 73

kedrin@baltika.ru