AVAS ended Alro’s post-privatization monitoring

Wed, 02/07/2007 - 01:00

Slatina, February 7th, 2007 - The aluminium producer ALRO Slatina (BVB: ALR) complied with all the clauses from the privatization contract. As a result, in October 2006, The Authority for State Assets Recovery ended the post-privatization monitoring.

In the first four years after the privatization, ALRO made technological investments of over 165 million USD, while the privatization contract required only 45 million USD investments. The environment investments reached 20 million USD, as compared to 16.5 million USD required. As a result, ALRO was given the integrated environment authorization for 10 years.

The social clauses were respected, as the company didn’t implement any collective layoffs and signed social protection contracts with the trade unions.

According to a release from the Authority for State Assets Recovery, „as all the obligations assumed were fulfilled, AVAS’ board decided to reduce the period of the contract signed with Marco Acquisitions Ltd. Marea Britanie, Marco International Inc New York, S.C. CONEF S.A. and Marco Industries BV Holland by closing an addendum to the contract. After the signing of the addendum comes the confirmation of complying with all the contract obligations, the end of the prost-privatization monitoring and the archiving of the documents. The board took the decision following the documents offered by the buyer and according to the legal requirements (Government Ordinance no 25/2002, regarding measures to control the complying with the clauses assumed through the privatization contracts, modified and completed and Government Decision no 489 /2003, regarding the Methodological Norms for GO no 25/2002 regarding measures to control the complying with the clauses assumed through the privatization contracts).

After analyzing the compliance with the privatization contract, it was determined that all the clauses from the contract were complied with, among the most important being:

  • The commitment to make portfolio investments of 16.6 million USD in companies from the aluminium industry; the commitment was fulfilled by investing in ALPROM Slatina and ALUM Tulcea;
  • The commitment to invest 45 million USD fulfilled integrally;
  • The compliance with all the wrights and obligations deriving from the Collective Labour Contract, the Social Agreements, and the individual labour contracts
  • The commitment to have the same number of employees for the duration of the social agreements (3,742) up until August 15th, 2006;
  • As major shareholder, the buyer committed to comply with the conformation program and to fulfill the obligations from the Environment Permit for the privatization

Accordingly, after the addendum of the privatization contract is signed, AVAS will confirm that all the clauses were fulfilled and will end the post-privatization monitoring for ALRO Slatina”, says AVAS’ release.

The development strategy implemented in ALRO by the major shareholder shows his commitment towards the company and fully complies with the obligations assumed in the privatization contract. ALRO will continue the investments program estimated at one billion USD, in order to increase the production capacity for all the group’s units and in order to consolidate its position on the international aluminium market.