United Rusal : LMZ SKAD lifts aluminium wheels production by 27% in 2017

Moscow, 15 December 2017 - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUAL), a leading global aluminium producer, is pleased to announce that LMZ SKAD has significantly increased its output of aluminium wheels.

RUSAL acquired a share of LMZ SKAD, one of the leading alloy wheels manufacturers in Russia, in April 2017. Following the acquisition, the implementation of RUSAL's Production System and efficient processes have improved SKAD's major business operations alongside the expansion of its product mix.

By the end of 2017, the Company aims to increase the number of wheels produced, by 27% YoY to 1.1 million wheels per year.

In order to strengthen its export market sales, SKAD has introduced a range of products specially designed for European consumers. In 2017 the Italian company Momo Srl joined a list of the Company's key partners that previously included Ford Motor Company and Alcar.

In 2017, export markets accounted for 40% of the total sales of SKAD products.

Developing closer cooperation with RUSAL smelters, the SKAD Research Centre engaged Krasnoyarsk Aluminum Smelter (KrAZ) to launch the production and direct supply of aluminium-silicon (AlSi) based alloys.

The developed alloy is characterized by its higher strength, stiffness and lightness, which provides optimal quality to the alloy wheels. Previously SKAD has produced this alloy in its own cast house. Direct supplies from the smelter will allow for improved business processes and increasing SKAD's profitability.

In 2018, the Company plans to invest in the expansion and upgrade of its equipment. Additional casting lines and processing machines will allow the Company to boost production by another 200-250 thousand wheels by the end of 2018 and increase its domestic market share. It is also planning to introduce more than 10 new models of aluminium wheels to the market.

Note:

Founded in 2002, foundry and mechanical production facility SKAD LLC began its production output in 2004. SKAD products are widely represented in Russia and other CIS countries and the Company actively cooperates with leading automobile companies around the world, such as Ford Motor Company, Volkswagen, Peugeot, Citroen, KIA and Toyota Motor Corporation.

SKAD performs a complete technological production cycle of aluminium wheels: from preparation of liquid melt to painting, packaging and the shipment of finished products to end users. The wheels producer is a consumer of primary aluminium and primary aluminium-based alloys that are produced at RUSAL's production facilities.