Alro invested over RON 26 million in 2010, for improving efficiency

Mon, 03/07/2011 - 10:34

•    The programme increased production capacity for high added value products and reduced utilities consumption
•    Significantly improved work productivity
•    The company paid taxes of RON 113 million last year
•    The aluminium producer had training programmes for all employees
•    A new Collective Labour Contract for 2011 guaranteeing salaries, bonuses and other incentives for 2,530 employees

Slatina, 7 March 2011 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, had an overall investment programme of USD 8.8 million (approx RON 26 million) in 2010, focused on improving efficiency of the smelter and reducing industrial waters and gas consumption.
The investments led to bigger output of higher added value products, improving quality of products and work productivity.

“We continue our long term development strategy, focused on increasing output of highly processed products, with bigger margins”, said Gheorghe Dobra, General Manager of Alro Slatina. “Since 2008, we laid a sound foundation that led to a competitive cost structure. This cost cut programme helped us better build on the improved situation from the aluminium market. It also allows us, on the long run to implement our development strategy, idled during the worst moments of the international crisis”.

The Company increased the production capacity, following a USD 3.3 million investment in new equipments and facilities for aluminium production, for the new mill for wire road and for the Cold Rolling Mill. Alro also focused on reducing industrial water and gas consumption, after a USD 2.13 million programme implemented last year. As a result, the productivity for primary aluminium sector increased from 89.2 tonnes/employee, in 2008, to 126.1 tonnes/employee, in 2010. The productivity for processed aluminium increased from 37.3 tonnes/employee, in 2008, to 75.2 tonnes/employeeslast year.

The aluminium producer continues its investments in employees, for improving working conditions and ensuring a safe working environment. It also developed training programmes for all 2,530 workers of the smelter.
The employees also have a new collective labour contract for 2011, ensuring incentives such as meal tickets, hot meals for all personnel, performance bonus of up to one gross salary and
bonuses for holidays (Woman’s Day, Easter, Metallurgical workers day, Christmas, yearly holidays).

Besides being the biggest employer in Olt, Alro is also a main contributor to the Romanian state budget. The Company paid overall taxes 2010 of RON 113 million, increasing from RON 101.4 million, in 2009. The Company’s social responsibility exceeds its 2,530 employees and 3,000 indirect jobs created by contracting companies. Alro continues its involvement in strategic CSR activities, for emergency aid, health care system, education and sports.

According to Romanian Accountancy Standards, for 2010, the Company reported a preliminary net profit of RON 160.44 million (approx USD 50.48 million), compared to RON 78 million, registered in 2009. The turnover was of RON 1.81 billion (USD 570 million), compared to RON 1.41 billion, in 2009. Alro paid a profit tax for 2010 of RON 33.37 million, while the Company’s other taxes amounted at RON 80 million.

For further information please contact:

Florenta Ghita
Premium Communication

Phone +40 (0) 21 411 01 52

Notes to the Editors:
Alro SA is subsidiary of Vimetco, a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium production facility in Central and Eastern Europe measured by volume with an installed production capacity of 265,000 tonnes per year

The main markets for the aluminium manufactured by Alro SA are within the EU (Hungary, Poland, Greece, Germany and Romania). The Company also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificate for aerospace production organizations, its products respecting the quality standards for primary aluminium on the London Metal Exchange – LME, as well as the international standards for flat rolled products.