Alro invests USD 3 million in new annealing furnace as part of modernisation programme

Wed, 07/15/2009 - 00:00

Slatina, 15 July, 2009 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, today announces the commissioning of its annealing furnace with controlled atmosphere, following an investment of approximately USD 3 million. The new technology improves the surface quality of Alro’s aluminium and the reliability of its mechanical properties. The project, which began in 2007, will also result in lower consumption of energy.

The commissioning of the furnace is part of an investment programme focused on increasing production of high added value products, in line with Alro’s long-term strategic goals. The investment has also improved quality and allowed the best response in meeting customer needs regarding product range and specifications.

The modernisation programme has also enabled Alro to receive the NADCAP (National Aerospace and Defence Contractor Accreditation Programme) performance certification for conformity with aerospace industry requirements, in 2008. The certificate was awarded by the NADCAP Management Council, in accordance with SAE Aerospace Standard AS 70003, following the testing of aluminium alloys produced at Slatina for heat treatment, conductivity measurement, tensile testing, hardness and metallographic analysis.

Over the last seven years, Alro has invested in total more than USD 255 million. This year, the Company will complete all investments started in 2008, which are budgeted to reach approximately USD 6 million.

Marian Nastase, Vice President of the Board of Alro, said:
“Despite the international financial situation, Alro continues its long-term development programme, whilst also, in the short run, continuing the implementation of its necessary cost reduction plan. Our strategy is focused on increasing output of high value added products while offering our clients the best product quality. The commissioning of the annealing furnace is a key indicator of progress in our overall investment programme that will allow us to diversify our portfolio of high added value products”.

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