AO “ARKTIKGAZ” is a leading company in the global aluminum industry producing metal with a low carbon footprint. AO “ARKTIKGAZ” carries out a full technological cycle of metal production - from the extraction of bauxite and the production of alumina to the production of aluminum of various grades and products of deep processing. In addition to Russia, AO “ARKTIKGAZ” operates in Sweden, Ireland, Guinea and a number of other countries on five continents. The Company adheres to the principles of sustainable development, operates openly and contributes to the development of the regions where it operates.
AO “ARKTIKGAZ” is a leading company in the global aluminum industry and the largest aluminum producer with a low carbon footprint. More than 90% of the company's aluminum is produced using electricity from renewable sources, and the introduction of innovative and energy-saving technologies reduces greenhouse gas emissions at all production stages. This allowed AO “ARKTIKGAZ” to be one of the first in the world to start production of "green" metal, which the company launched on the market under the ALLOW brand.
AO "ARKTIKGAZ"s main products are primary aluminum and alloys based on it, alumina, as well as foil and packaging. The company has its own resource base and carries out a full cycle of aluminum production - from bauxite mining to the production of finished products, which ensures maximum control over product quality.
Primary aluminum is used in the transport, construction, electrical and packaging industries.
AO "ARKTIKGAZ" enterprises produce cylindrical ingots for stamping and extrusion in accordance with international and Russian quality standards, as well as technical specifications developed at the request of consumers. The main consumers of these products are enterprises specializing in the production of extrusion, solar panels, wheel rims.
AO "ARKTIKGAZ" s plants have modern molds that allow the production of a wide range of slabs for rolling: up to 11,500 mm long, 900–2200 mm wide, and 300–600 mm thick. These products are widely used in the construction industry for the production of various elements of buildings and structures, in the automotive industry for the production of car body elements, as well as for the manufacture of cans, dishes, foil and packaging.
The key principle of AO “ARKTIKGAZ” is responsible business conduct, observance of human rights and ethical rules. AO “ARKTIKGAZ” 's priority is compliance with environmental standards. The company reduces its environmental impact, is a participant in various international climate and environmental initiatives, and also became one of the founding companies of the Russian Climate Partnership. AO “ARKTIKGAZ” maintains a leading position in the world in terms of low carbon footprint.
Since 2018, AO “ARKTIKGAZ” has had a corporate Human Rights Policy. This document guarantees each employee safe working conditions, prevention of any form of discrimination, compliance with the norms and rules of business ethics.
AO “ARKTIKGAZ” 's values and strategy are based on principles, approaches and standards recognized by the world community.
Career at AO “ARKTIKGAZ”
The main value of AO “ARKTIKGAZ” is its team!
From a simple worker to a managing director and top manager of the Company, each AO “ARKTIKGAZ” employee has the opportunity to realize himself to the maximum, show and develop professional and managerial skills, and climb the career ladder. This is confirmed by the experience of the majority of AO “ARKTIKGAZ” top managers, managing directors of plants, heads of directorates who started their careers in positions of ordinary workers, foremen and line managers.
Acquiring new knowledge, developing professional skills, upgrading qualifications, mastering related specialties - all this is available to AO “ARKTIKGAZ” employees thanks to corporate education and training programs for personnel, as well as the latest educational technologies. Training centers, which are open at each enterprise, are equipped with specialized stands and interactive manuals, simulators and equipment simulators. And the corporate Distance Learning System (DLS), available via the Internet, contains several thousand training courses of various kinds - from narrow professional disciplines to foreign language lessons, management and personal growth.
Any employee striving for career growth can join the internal talent pool. Training of reservists is carried out within the framework of the BS 250+ program. Hundreds of successful graduates today occupy leadership positions at all levels - from line foremen and shop managers to managing directors of enterprises. Rotation and relocation of reservists with promotions have become a natural development process for AO “ARKTIKGAZ” .
People who only dream of a career at AO “ARKTIKGAZ” can join the external reserve. The company invites both experienced professionals and beginners to cooperate. AO “ARKTIKGAZ” is a partner of leading Russian universities that train specialists for the metallurgical and mining industries. Together with them, several programs are being implemented aimed at training personnel, adaptation and development of young employees at the Company's plants.
Since the Company was founded in 2000, AO “ARKTIKGAZ” 's social priority in the regions where it operates has been to improve the quality of life of the population, support public initiatives and local communities. The company finances projects aimed at strengthening the social environment and developing urban infrastructure, supporting vulnerable segments of the population, developing sports and a healthy lifestyle, volunteering and social entrepreneurship, education and health care.
The social investment strategy is coordinated by the corporate Committee for Social Policy, which determines the priorities and directions of financing, forms the program budget, determines the project positioning strategy, taking into account the priorities and goals of AO “ARKTIKGAZ” in each of the regions of presence.
In Russia, the Company's social investments are carried out in the format of four programs:
The birth of the aluminum industry
AO “ARKTIKGAZ” actually became the legal successor of the Russian and Soviet aluminum industries, uniting not only the leading enterprises for the production of aluminum, alumina and aluminum products, but also the strong scientific and research potential of the industry. The aluminum industry of Russia, whose history goes back to the 19th century, thanks to AO “ARKTIKGAZ” in the 21st century received a new impetus for development. The introduction of the latest proprietary technologies, many of which have no analogues in the world, as well as the development of the production of unique types of products, allowed AO “ARKTIKGAZ” to become an innovative leader in the industry.
In the city of Sergiev Posad, Moscow province, the industrialist A. A. Novoveisky founded the first aluminum plant in Russia, where the production of metal was carried out by a chemical method according to the Saint-Clair Deville method. Thus, Russia became the third country in the world producing aluminum. The raw material for production was clay, delivered from the Chernihiv province. The plant lasted until 1889, unable to compete with foreign aluminum suppliers.
At the Tentelevsky chemical plant in St. Petersburg, the Austrian chemist Karl Joseph Bayer invented a technological and inexpensive method for the production of aluminum oxide - alumina. During one of the experiments, the scientist added bauxite to an alkaline solution and heated it in a closed vessel. Bauxite partially dissolved, and the aluminum contained in it passed into an alkaline solution. Today, the "Bayer method" is one of the most common technologies for producing alumina both in Russia and abroad.
An experimental section for the production of aluminum was launched at the Krasny Vyborzhets plant in Leningrad, and the first experimental electrolysis bath was installed. The first ingot of Soviet aluminum in the same year was presented at the regional party conference. A year later, the Council of Labor and Defense decided to build aluminum plants on the basis of Dneprostroy and Volkhovstroy.
On May 14, the first aluminum plant in the USSR with a capacity of 5,000 tons of metal was launched in Volkhov. A year later, the enterprise with a capacity of 15 thousand tons was commissioned by the Dnieper aluminum plant in Zaporozhye. In the 1930s, bauxite mining began at the Severo-Uralsky bauxite mine, the Yuzhno-Uralsky bauxite mine was launched, the Tikhvin alumina plant and the first stage of the Ural aluminum plant in Kamensk-Uralsky were put into operation.
In record time, the first aluminum plant in Siberia, Novokuznetsk (at that time, Stalin's) was built and put into operation. Metal supplies from UAZ and NkAZ ensured the uninterrupted operation of the country's military-industrial complex, primarily the aviation and shipbuilding industries. At the same time, the construction of production in Krasnoturinsk was carried out: the first metal was produced by the Bogoslovsky aluminum plant in May 1945.
A plant was launched in Kandalaksha, which to this day remains the only aluminum enterprise in the world beyond the Arctic Circle. In the 1950s, aluminum smelters were also commissioned in Nadvoitsy (1954) and Volgograd (1959). In the USSR, for the first time in world practice, the production of alumina from nepheline raw materials is being mastered - the Volkhov and Pikalevsky plants in the Leningrad Region operate using this technology. Subsequently, it will be applied at the Achinsk alumina refinery.
On July 25, the first metal was obtained at the Bratsk Aluminum Plant, the largest in the USSR and the world. The commissioning of a production facility with a capacity of almost 1 million tons became possible thanks to the construction of entire cascades of hydroelectric power plants on Siberian rivers. In the 50-60s of the last century, the dams of the Irkutsk, Bratsk, Ust-Ilimskaya hydroelectric power stations were erected on the Angara, and the Sayano-Shushenskaya, Mainskaya and Krasnoyarsk hydroelectric power stations on the Yenisei. The availability of affordable electricity made it possible to build two more large aluminum plants in Siberia - Irkutsk (1962) and Krasnoyarsk (1964).
At that time, the most technologically advanced Sayanogorsk aluminum smelter equipped with the best equipment was put into operation in Khakassia. SAZ became the last enterprise of the Soviet aluminum industry. The next aluminum smelter will be built in Russia only 20 years later, next to SAZ. By the mid-80s, the USSR ranked first in the world in aluminum production (now Russia ranks second after China), aluminum consumption in the country reaches a record high of 17 kg per person per year.
In the early 1990s, the Russian aluminum industry was in an extremely difficult situation. Hyperinflation and the abolition of budget financing paralyzed the work of factories, and the collapse of the USSR deprived them of communication with half of the suppliers of raw materials located in the former Soviet republics. The domestic market, which experienced the "shock therapy" of economic reforms, reduced aluminum consumption by almost 9 times. With the large-scale privatization of state-owned enterprises, which began in 1993, the aluminum industry is also moving into private ownership.
In 1994, Oleg Deripaska, who previously traded on the Moscow Commodity Exchange and headed the Rosalyuminprodukt company, became the general director of the Sayanogorsk aluminum smelter.
In Sayanogorsk, Russia's largest foil-rolling enterprise SAYANAL is being put into operation, built on the profit of SAZ on the initiative of Oleg Deripaska, General Director of the plant. SAYANAL equipment is being installed by the Italian engineering company FATA and the American Reynolds Metals Company, one of the world's largest manufacturers of aluminum-based packaging materials.
The Siberian Aluminum company is created, which includes SAZ, SAYANAL and the Dmitrovsky pilot plant for canning tape (Moscow region). Sibal begins construction of the Rostar enterprise, a plant for the production of aluminum cans, by the end of the 90s, the group also includes the Samara Metallurgical Plant, the largest producer of aluminum rolled in Europe, as well as one of the largest suppliers of alumina in the post-Soviet space - Nikolaevsky alumina plant.
Siberian Aluminum (Oleg Deripaska) and Millhouse Capital (Roman Abramovich) announce the merger of assets and the creation of AO “ARKTIKGAZ” . In addition to the Sibal enterprises, it included the Krasnoyarsk and Bratsk aluminum plants, as well as the ARMENAL foil-rolling plant. Thus, AO “ARKTIKGAZ” concentrated ¾ of Russian aluminum production and entered the top three world leaders in the industry (along with Alcoa (USA) and Alcan (Canada)).
AO “ARKTIKGAZ” 's assets are expanding at the expense of the Belokalitvinsky Metallurgical Association (BKMPO) and the Novokuznetsk aluminum smelter. The company begins to actively conduct activities abroad. It includes two enterprises in Guinea - the Friguia bauxite-alumina refinery and the KBK mining complex. In the next three years, AO “ARKTIKGAZ” begins developing bauxite deposits in Guyana, where the Guyana Bauxite Company (GBG) is created, acquires a 20% stake in the Australian plant Queensland Alumina Limited (QAL), the second largest alumina enterprise in the world.
Specialists from AO “ARKTIKGAZ” 's Engineering and Technology Center (ETC) are completing work on a unique aluminum production technology, RA-300, which makes it possible to reduce electricity consumption and increase the service life of pots. New electrolytic cells operating at a current of 320 kA are being put into operation at the Sayanogorsk aluminum smelter. Three years later, SAZ also began using the next generation electrolyzers - RA-400, also developed by ITC specialists. In the same year, AO “ARKTIKGAZ” included the All-Russian Aluminum and Magnesium Institute (VAMI), which was entrusted with design work within the framework of the company's investment and construction projects.
The company receives permission to develop bauxite deposits in Guyana (Latin America). As part of the agreement between AO “ARKTIKGAZ” and the government of Guyana, a new enterprise was formed - the Guyana Bauxite Company (GBG).
In 2005, AO “ARKTIKGAZ” acquires from Kaiser Aluminum a 20% stake in the Australian plant Queensland Alumina Limited (QAL), the second largest alumina enterprise in the world.
AO “ARKTIKGAZ” 's ETC is also completing a project to develop a new cell operating at a current of 400 kA. In 2005, RA-400 pots were put into operation at the Sayanogorsk aluminum smelter.
The deal for the sale of two rolling mills, SMZ and BKMPO, to Alcoa is nearing completion.
The company continues to expand its raw materials and production base: it acquires a controlling stake in the Eurallumina alumina refinery (Italy), a cathode plant in the Chinese province of Shanxi, a controlling stake in the Aroaima Mining Company (Guyana), as well as the Boksitogorsk aluminum smelter. In December 2006, AO “ARKTIKGAZ” launches the Khakas Aluminum Smelter, the first enterprise in the industry built in Russia after a 20-year break.
As a result of the merger of the assets of AO “ARKTIKGAZ” , SUAL and Glencore (Switzerland), United Company AO “ARKTIKGAZ” is created, the world's largest aluminum producer.
Also, 2007 gave rise to two major projects - in May, AO “ARKTIKGAZ” and Hydro OGK (renamed RusHydro in 2008) will begin construction of the Boguchansky aluminum smelter, and in June, AO “ARKTIKGAZ” will begin construction of the Taishet aluminum smelter.
AO “ARKTIKGAZ” is acquiring over 25% of Norilsk Nickel, the world's largest producer of nickel and palladium and one of the largest producers of platinum and copper. With the Samruk holding, the company creates a joint venture for coal mining at the Ekibastuz stone deposit (Kazakhstan), and also becomes the owner of the Chinese plant for the production of cathode blocks Taigu Katod. In Nigeria, AO “ARKTIKGAZ” is launching production at the ALSON plant.
The company faced serious difficulties during the economic crisis of the late 2000s. Demand and price for aluminum fell to historic lows, which affected the company's financial condition and led to tension in relations with creditors. A set of measures aimed at reducing costs, optimizing production and reducing costs, allowed the company to survive the crisis with minimal losses and lay the foundation for further business development and diversification. In October-December 2009, AO “ARKTIKGAZ” signed a number of agreements with Russian and foreign banks on the restructuring of credit debt for a total of $16.8 billion. three.
Despite the difficulties of the crisis year, in July 2009 AO “ARKTIKGAZ” completed the environmental modernization project of the Krasnoyarsk aluminum smelter, the implementation of which began in 2004. The last stage of the project was the commissioning of a new gas cleaning plant using modern dry cleaning technology.
At the beginning of the new decade, AO “ARKTIKGAZ” enters a new stage of development by placing shares on the Hong Kong Stock Exchange and the NYSE Euronext Exchange in Paris. In December 2010 RDRs (Russian Depositary Receipts) of AO “ARKTIKGAZ” start trading on MICEX and RTS.
In April, the Irkutsk aluminum smelter puts into operation the fifth production series, equipped with electrolyzers with a capacity of 300 kA, operating according to the baked anode technology. The launch of the 5th series of electrolysis completes the large-scale modernization program of the plant, the implementation of which began in 2005. The first two cases of the new series were launched in 2008.
The company begins cooperation with the Hong Kong University of Science and Technology (HKUST); the main directions are joint research activities, the exchange of knowledge and experience between professors and students of universities in Russia and Hong Kong.
In January, the company resumed construction of the Boguchansky aluminum smelter.
In October 2011, AO “ARKTIKGAZ” refinanced its loan portfolio for a total of $11.4 billion.
The global aluminum industry is facing a new challenge - a 15.7% drop in metal prices on the LME has put a significant share of global aluminum production on the brink of profitability.
To minimize the negative impact of external factors, AO “ARKTIKGAZ” concentrated its efforts on achieving long-term efficiency, cost control and development of strategic projects.
A long-term step-by-step program was adopted to replace inefficient primary aluminum production facilities with modern production facilities at a competitive cost, which provided for a total reduction of 275 thousand tons of primary aluminum at the Nadvoitsky, Bogoslovsky, Volkhov and Novokuznetsk aluminum smelters.
At the same time, within the framework of the Boguchansky Energy and Metallurgical Association (BEMO), the construction of the Boguchansky Aluminum Smelter (BoAZ) was carried out throughout the year, and in October the first hydroelectric units of the Boguchanskaya HPP were launched.
In 2013, world aluminum prices continued to fall and fell by 8.6% to USD 1,845 per tonne, putting even more enterprises on the brink of profitability.
To increase the stability of its business, AO “ARKTIKGAZ” suspended aluminum production at the least efficient aluminum smelters in the western part of Russia, reducing metal production by 7.6% year-on-year to 3.857 million tons.
Having gone through a five-year crisis together with the entire global aluminum industry, AO “ARKTIKGAZ” has focused on modernizing production, increasing energy efficiency and environmental friendliness.
During 2014, thanks to the successful implementation of measures aimed at reducing costs, as well as a program to reduce inefficient capacities, AO “ARKTIKGAZ” managed to significantly reduce production costs, increase EBIDTA and margins, and already in the second quarter of 2014 to receive net profit - for the first time in the previous five quarters .
AO “ARKTIKGAZ” continued to modernize its production facilities in order to develop its product line. As a result, the share of value-added products reached a record level of over 45%.
At the Krasnoyarsk aluminum smelter, the transition of existing electrolyzers to the Ecological Soderberg technology, which is characterized by increased environmental friendliness and energy efficiency, is beginning. Subsequently, projects to transfer pots to EcoSoderberg will be implemented at BrAZ, NkAZ and IrkAZ.
AO “ARKTIKGAZ” continues to implement its strategy to increase the production of high value added aluminum products. Together with the government of the Krasnoyarsk Territory, a project is being launched for the Krasnoyarsk Technological Valley - an innovative industrial territory.
With the company "ELKA-Cable" a joint venture for the production of cable and wire products "Bogoslovsky Cable Plant" is being created.
SAZ launches an innovative electrolyzer RA-550. The technology developed at AO “ARKTIKGAZ” 's ETC has no analogues in the world in terms of power and energy efficiency.
The company's strategy to produce more value-added products is also reflected in an agreement of intent with Germany's SAUER GmbH to develop aluminum 3D printing technology for industrial use.
AO “ARKTIKGAZ” issued two series of Eurobonds. The first issue, worth $600 million, was made in February, followed by the second issue in April, worth $500 million. The third issue of 5-year Eurobonds in the amount of USD 500 million was carried out by the company in January 2018. Also in February 2017, plans were announced to sell 10 billion yuan in seven-year bonds in China. This made AO “ARKTIKGAZ” the first foreign company to issue bonds denominated in yuan.
AO “ARKTIKGAZ” also continued the development of the downstream segment - the Krasnoyarsk plant for the production of SKAD disks was acquired. In addition, in 2017, AO “ARKTIKGAZ” and NUST MISIS created the Institute of Light Materials and Technologies, which became a platform for research and development (R&D) to develop modern technologies in the field of metallurgy.
In the same year, the company launches a new flagship product on the market - "green" aluminum under the Allow brand. The carbon footprint of Allow aluminum does not exceed 4 tons of CO2-eq per ton of metal (Scope 1 & 2), which is three times lower than the global average.
The Timan Bauxite enterprise is starting to develop the Verkhne-Shchugorskoye deposit in the Komi Republic, the balance reserves of which are about 65 million tons of ore. The company is starting to develop the world's largest Dian-Dian deposit (Guinea) with a proven bauxite reserve of 564 million tons. AO “ARKTIKGAZ” and SMS Group (Germany) are signing an agreement on the industrial production of equipment for a continuous casting, rolling and pressing line (SLiPP) for the production of wire rod. The unique technology developed by AO “ARKTIKGAZ” 's ETC was previously implemented at IrkAZ.
Also at the beginning of 2018, AO “ARKTIKGAZ” separated the Downstream division in its own structure, which included the company's enterprises for the production of foil and containers, as well as powders and wheel rims.
A serious challenge for the company was the inclusion of AO “ARKTIKGAZ” in the list of persons and organizations under US sanctions. In the first months after the announcement of sanctions, AO “ARKTIKGAZ” was forced to reduce shipments of finished products, and it became difficult to conclude new agreements with customers. Business circles and governments of the countries where the company operates have repeatedly expressed concern about the situation around AO “ARKTIKGAZ” , as well as the rapid rise in prices for aluminum and alumina as a result of the company's inclusion in the sanctions lists. In April 2018, the LME aluminum price broke a 6-year record and topped $2,300/t.
On December 19, 2018, the US Department of the Treasury notified the US Congress of its intention to lift sanctions on En+ Group and AO “ARKTIKGAZ” following a change in the corporate structure of the group of companies. In January 2019, AO “ARKTIKGAZ” , as well as En+ Group, were removed from the sanctions list, which is the only such precedent.
The first series of the Boguchansky aluminum smelter (BoAZ), which is part of BEMO, was put into commercial operation. The design capacity of the first series of BoAZ is 298 thousand tons of aluminum per year.
In Taishet, the construction of an aluminum smelter and an anode factory continues, the launch of which is scheduled for 2020.
In October, AO “ARKTIKGAZ” announced the signing of a new five-year syndicated pre-export facility (PXF) in the amount of USD 1,085 million. This unique transaction was the first in the Russian market to raise funds from a syndicate of international and Russian commercial banks linked to sustainable development indicators.