Romanian aluminium maker Alro posts loss after renegotiation of energy contract

Romania’s aluminium producer Alro Slatina, controlled by Russian – owned Vimetco, ended 2012 on a loss, EUR 38.4 million, after an EUR 49 million profit in 2011. The reported data is preliminary and unaudited. 

This is the first time Alro posts a loss after its 2002 privatization. “External, unpredicted factors, such as those related to energy supply and its taxation, influenced total costs, having a significant impact over the results,” said Marian Nastase, president of Alro Slatina.

Last year, Alro renegotiated its energy supply contract with Hidroelectrica and ended up paying 50 percent more, as well as EUR 11 million extra for the first half of 2012.

Alro is a subsidiary of Vimetco N.V., a global aluminium producer. The firm has an installed production capacity of 265,000 tonnes per year, making it the largest aluminium producer in Central and Eastern Europe when measured by volume.

Source: romania-insider.com