Alro SA invests over 5.9 million USD for implementing a unified corporate information system based on SAP’s ERP platform

Slatina, November 19th, 2007 – Alro, the largest aluminium producer in Central and Eastern Europe and IBS, the Russian IT and consulting market leader, announce the commissioning of a unified corporate information system based on SAP’s ERP platform. The total amount of investments made by Alro SA in order to implement the SAP ERP exceeded US$ 5.9 million. The new system started operating on September 1, 2007.

Gheorghe Dobra, CEO of Alro Slatina says: “Implementing a state-of-the-art information system substantially enhances quality and availability of management reports. This will allow the management to streamline all processes within Alro, thus improving the efficiency and profitability of operations.”

The SAP ERP system is to be used as a platform for business process unification and a control tool for the company’s activity. In order to remain competitive on the international markets, Alro took these additional measures to optimise costs.

The project that started on November 1st, 2006, was called upon to enhance the management efficiency through standardisation of functions common to all plants, centralisation of non-productive functions at the head office, and control over the enterprise business processes via an integrated information system in real time.

The unified corporate information system of Alro, which includes the transaction and analytical systems, is built on the basis of SAP’s Enterprise Resource Planning (SAP ERP). During phase 1 of the project the finance management module was implemented (including accounting to local Romanian and to international IFRS standards), as well as the modules for management accounting, investment management, management of materials flows, purchasing, sales, and production planning and control. Furthermore, a system for budgeting and analytical reporting was set up. The system of strategic planning based on SAP’s Business Intelligence platform will become fully operational before the end of 2007.

During Phase 2, which is scheduled for 2008, Alro plans to further develop the reports of modules already introduced, and to install a Plant Maintenance control system (based on SAP PM). Integration is planned with the existing Manufacturing Execution Systems (MES) and the SAP ERP system. The system will be localised for operation in Romania. Based on the success of the SAP ERP implementation in Romania, Vimetco – Alro’s majority shareholder – intends to introduce the same information system to its aluminium operations in China.