Moscow, 18 August 2003: SUAL Group, one of the World’s top ten aluminium producers, today announces its production results for the first half year (H1) to 30 June 2003.

Bauxite production for the period was 2.1 million tonnes, an increase of 10.4 per cent over H1 2002. This reflects a strong second quarter (Q2) performance, where bauxite production increased by 35.5 per cent over Q2 2002, to reach 1.04 million tonnes. The Group’s two bauxite mines, North-Ural Bauxite and Middle-Timan increased production by 7.6 per cent and 24 per cent respectively compared with H1 2002. The strong growth in output from Middle-Timan follows a programme to develop the mine to serve SUAL’s growing demand for alumina.

Alumina production in H1 2003 was 1.01 million tonnes, an increase of 17.2 per cent over the same period in 2002. This includes a first time contribution to H1 2003 from Pikalevo Alumina. It also reflects improved bauxite supply logistics at the Group’s alumina refineries, and a successful programme of modernisation and technical enhancements at Ural Aluminium.

In H1 2003, Primary aluminium production was 441.9 thousand tonnes, a 29.1 per cent increase over H1 2002. The total for H1 2003 includes a first time contribution from the Volgograd and Volkhov smelters. In addition, the Group’s other smelters all increased production, while Ural Aluminium also benefited from an electrolytic production modernisation programme.

The Group’s aluminium processing (downstream) plants increased their output following a shift in emphasis towards greater value-added production. At Kamensk-Uralsky Metallurgical, production of aluminium slab and semi-finished products rose by 17 per cent over the same half in 2002. Mikhailovsk Foil doubled its output of foil and strip aluminium to 4,600 tonnes, compared with H1 2002.

The total volume of silicon produced in H1 2003 decreased by 1.3 per cent to 25,600 tonnes. This decline was largely due to the introduction of anti-dumping duties on silicon in the United States at the beginning of 2003. Despite this, Ural Silicon increased production compared with H1 2002.

In H1 2003, SUAL’s cable producing companies increased their output by 5.8 per cent. Production at Irkutsk Cable rose by 23.5 per cent during the period, although Kirs Cable experienced a decline in output of 9.1 per cent, as a result of reduced sales of non-insulated wire, a core component of the plant’s production mix. Offsetting this, Irkutsk Cable saw an increased demand for insulated wire, one of its primary products.