KIEV, March 28 - Russian aluminum giant Rusal is considering setting up a separate company on the basis of rolling production at its Ukrainian asset - Zaporizhia Aluminum Smelter (ZALK) which would only produce aluminum rods.

A spokesman for the plant said that the idea of setting up a new company on the basis of existing capacity at ZALK, in which the debts of the main company will not be listed, is currently under consideration. "This will enable the new company to work steadily and continue to produce a monthly over 1,500 tons of rod from primary aluminum, settle payments and deductions as well as saving the main shareholder from the headache of the constant threat of nationalization for ZALK as the remaining capacity is almost beyond recovery and in this sense has no value," the spokesman said.

However, there is no opportunity right now to set up the new company because all ZALK assets have been frozen due to litigation to renationalize a 68.01% stake in the smelter.