Main results of 2001

In 2001, Siberian-Urals Aluminum Company, SUAL increased production of aluminum by 1.2 percent to 602,000 tons and concentrated aluminum ore by 3.18 percent to 1.7 million tons.

The results of SUAL's member enterprises were as follows: Irkutsk Aluminum Plant produced 272,000 tons of primary aluminum (-0.6 percent); Bogoslovsky Aluminum Plant produced 175,000 tons of primary aluminum (+4 percent) and 1.05 million tons of concentrated aluminum ore (+1.4 percent); Urals Aluminum Plant produced 85,000 tons of aluminum (+2.2 percent) and 650,000 tons of concentrated aluminum ore (+6.2 percent); Kandalaksha Aluminum Plant produced 70,000 tons of aluminum which was exactly the same amount as in 2000.

SUAL controls 37 percent of the Nadvoitsky Aluminum Plant (Karelia) which produced 72,300 tons of aluminum (+5.8 percent). The production of bauxites increased 30.1 percent in 2001 over 2000.

Company's place on the market based on 2001 results

SUAL ranks No. 1 in Russia and No. 7 in the world in terms of production of concentrated aluminum ore, and No. 2 in Russia and again No. 7 in the world in terms of primary aluminum output. SUAL member enterprises deservedly hold leading positions on the domestic market. The Demidov factory is the leading producer of anti-stick coated kitchenware. SUAL has no competitors in the sphere of aluminum powders. The cable factories which have been incorporated into SUAL have strengthened their leading positions as cable producers.

Exports: prospects for 2002

SUAL's structure of supplies is as follows: The domestic market accounts for 22 percent; exports to the United States, 8 percent; to Asian countries, 20 percent; and to Europe, 50 percent. In the near future SUAL plans to boost its presence on both domestic and foreign markets.

Investments in 2001 and plans for 2002

The weakening of world market prices for aluminum have forced SUAL to postpone a number of investment projects; only the priority ones have been preserved in their full volume, including the development of the Urals Aluminum Plant, modernization and upgrading of the Kamensk-Urals Metallurgical Plant, Mikhailovskoye Non-Ferrous Metal Processing Plant and Demidov Factory, and the development of the Mid-Timan ore deposit. All other projects will be completed in 2003 and 2004.

Plans call for investing a total of approximately $80 million, which will be taken from the company's owned funds by the end of this year.

Assessment of the Russian government's protection activities

On the one hand, Russia definitely should become a full-fledged member of the WTO. Otherwise, Western countries will continue with their anti-dumping and prohibitive customs policies. On the other hand, Russia should not seek WTO membership at any cost. Most of our industries are not developed enough to stand up to 100 percent open competition with the West. Therefore, the government should find a "golden medium."