Rusal is negotiating the sale of its stake in the Shenzen-based North United Aluminum (NUA) due to low sales volumes at the Chinese joint venture (JV).

 

According to media reports, Rusal is pitching its half of the Shenzen JV to Norinco, a Chinese government-backed trading organization. 

 

NUA’s aluminum trade volumes have decreased recently to unfeasible numbers due to government arbitration of sales in China, one of the biggest markets for primary aluminum. Rusal began its JV with NUA back in 2012.

 

The Russian aluminum maker is now setting up an independent trading firm in Shanghai, where it has already begun recruiting for the business, media reports noted citing posts for positions in the new firm on recruitment website Glassdoor. 

 

Moreover, the reports stated that by setting up an independent entity, Rusal would not share profits on volumes of aluminum imported into China. It will also be able to establish the brand’s presence and market share in the Chinese market, which accounted for 27pc of the aluminum maker’s total sales in Q2. 

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