ARMENAL first quarter output sees 2 percent rise

YEREVAN, May 14. /ARKA/. The Armenian-Russian ARMENAL foil-rolling plant in Yerevan, which is part of the world's largest aluminium producer RUSAL, produced 6,020 tons of output in the first quarter of this year, a 2% increase over the projected volume.

According to an Armenal press release, its exports in January-March this year amounted to 5,897 tons of foil, which was 0.5%, or 30 tons more from a year earlier. Armenal exports accounted for 5.5% in the overall Armenian exports in the first three months of 2012, it said.

During the reporting period, the plant paid 299 million drams in various taxes, by almost 40% more than in the first quarter of last year. The plant’s contribution to the Social Security Fund stood at 67.6 million (an increase of 5.1%).

The press release said also RUSAL posted an 84 percent drop in first-quarter net profit.  Net income in the first quarter of 2012 totalled $ 74 million compared to net loss of $ 974 million in the last quarter of 2011. It said RUSAL's earnings are expected to come under further pressure as it grapples with a strengthening ruble against the U.S. dollar and high oil prices.

"In response to continued uncertainty in the global economy, RUSAL is currently considering the curtailment of 300,000-600,000 metric tons of high-cost smelting capacity starting from the second half of 2012," RUSAL said.

The Armenal foil rolling mill was founded in May 2000 on the basis of Kanaker aluminum smelter in Yerevan. It is one of the biggest production facilities in Armenia and is the only producer of aluminum foil in the Caucasus and Central Asian regions. On May 18th, 2000 the mill was integrated into United Company RUSAL. Together with two other foil mills, SAYANAL in the Russian republic of Khakasia and Urals Foil, ARMENAL forms the company’s Packaging Division. -0-