ALRO Group is welcoming the Government’s decision to adopt the measure to compensate indirect emissions costs embedded in the energy price

Fri, 10/21/2022 - 07:41
  • The implementation of the Emergency Ordinance (EO) for Romanian energy-intensive companies does not have any impact on the electricity costs borne by other Romanian consumers;
  • The funds for the compensation come from the European Union (EU), through the funds Romania receives from auctioning the greenhouse gas emission certificates attributed to our country;
  • Implementing this compensation for the indirect emissions costs embedded in the energy price aligns the local legislation with the practices already implemented within other EU countries, thus preserving the Romanian industry competitiveness in Europe.

Slatina, 21 October 2022– ALRO S.A. (BVB: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, welcomes the adoption of the EO on compensating the indirect emissions costs embedded in the electricity price. The support scheme was prepared in accordance with the provisions of the European Commission Guidelines on certain State aid measures in the context of the greenhouse gas emission allowance trading scheme post-2021 and targeted the sectors exposed to a real risk of relocation of CO2 emissions due to the significant indirect costs embedded in the energy price.

The EU actually finances this compensation scheme through the revenues obtained by Romania from auctioning the greenhouse gas emission certificates attributed by the EU legislation to our country. Thus, the implementation of the EO for Romanian energy-intensive companies does not impact the electricity costs borne by other Romanian consumers.

“The adoption of the EO is a normal step towards levelling the field between Romanian companies and their competitors in the EU that benefit from the provisions of the European Commission Guidelines as early as March this year. We would like to express our thanks to the Romanian Government for the efforts done in the implementation of this scheme both at the European level and at the national level. Given the steep costs with electricity that brought many companies close to shutting down and forced others to reduce their activity significantly, this is a welcomed decision that needs swift operationalization", said Marian NĂSTASE, Chairman of the Board of Directors of ALRO.“The electricity costs impacted our activity more and more over the past years, reaching unsustainable levels over the past year. However, we took all possible measures to mitigate the costs and continue our business, invest in critical equipment, and maintain our market share locally and internationally. We believe this EO is an acknowledgement of both the importance of industrial companies for the Romanian economy and the efforts of those companies to continue their activity despite the several crises we went through over the past years”, added Marian NĂSTASE.

Despite very challenging market conditions, ALRO Group managed to maintain its presence in the international and local markets while being forced to take unprecedented measures, such as the temporary shutdown of three electrolysis pots and its alumina producer in Tulcea. All these decisions were in very close connection to the unsustainable energy costs that threatened many EU companies and led to the shutdown of a significant number of enterprises throughout the entire European Union.

 

Marian-Daniel NĂSTASE                                                              Gheorghe DOBRA

Chairman of the Board of Directors                                            Chief Executive Officer

 

For further information, please contact:

www.alro.ro

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

 

Notes to the Editor:

ALRO Group

The companies’ part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, ALUM S.A. – producer of alumina, Sierra Mineral Holdings I, Ltd. – bauxite mining, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Global Aluminium Ltd. – holding company and Bauxite Marketing Ltd – marketing, Vimetco Trading – aluminium sales. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.

 

ALRO

ALRO is subsidiary of Vimetco PLC (Republic of Cyprus), a global, vertically-integrated primary and processed aluminium producer. The structure of ALRO’s shareholders is: Vimetco PLC (54.19%), Paval Holding (23.21%), Fondul Proprietatea (10.21%) and others (12.38%).

ALRO is one of the largest vertically integrated aluminium producers, by capacity, in Europe, having an installed production capacity of 265,000 tonnes per annum of electrolytic aluminium, 47,000 tonnes per annum of recycled aluminium and the Cast-House has a total cast aluminium capacity of 332,000 tonnes per annum and processing facilities of 140,000 tpa of hot and cold rolling facilities and extrusion shop.

The main market for ALRO products is represented by the European Union; the Company exports its products to the USA and Asia, as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

Starting from 18 March 2019, the Index Committee of the Bucharest Stock Exchange approved the inclusion of ALRO (code ALR) in BET, the main index of the market, and in BET-TR, the total return version of BET. ALRO’s shares have been listed on the Bucharest Stock Exchange since October 1997 and ALRO represents the first company in the aluminium industry present in these two indices.

Since 2020, ALRO and Vimetco Extrusion are members of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.

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