German engineering firm Achenbach was selected to execute the program, scheduled for completion in 18 months at an investment cost of US $70 million, of which $20 million are the share of RusAl, which owns 100 percent shares of the mill.

The modernization program, which will also provide for a major upgrade in foil rolling equipment and also the establishment of a full production cycle, will lift the plant capacity by 25,000 tons of foil per year, including 18,000 tons of highly profitable thin foil in 6-9 micron gauge-increasing ArmenAl's profitability by 150%. On completion of the project, RusAl-ArmenAl's market share of thin foil production will reach 2.5% by 2008.

Avetikian said some 30-35 percent of $70 million (around $20) will be paid as wages to Armenian workers and specialists and part of that money will be used to buy some equipment in Armenia.

The modernization program, apart from a full-scale upgrade in rolling equipment, includes the installation of new casting machines and direct rolling mill, as well as an upgrade of hot rolling mills, to create a full cycle of production. As part of the modernization program the main foil rolling equipment will be refitted with control and automatic management systems. High- and low-pressure ancillary system hydraulics will also be upgraded.

Elaboration of the program will raise the quality and profitability of RusAl-ArmenAl products and enable the manufacturing of new product ranges, as well as securing a continuous supply of raw materials by switching from coil to foil ingot, and set up a recycling loop for foil scrap.