EximBank finances with RON 167 million the current activity of ALRO Slatina
Bucharest, 14 July 2021 – EximBank granted a financing facility amounting to RON 167 million to ALRO Slatina, the only producer of aluminium and aluminium alloys in Romania and one of the largest vertically integrated aluminium producers in Europe, measured by production capacity. The funds are intended to provide the necessary liquidity for the current activity of the Company and were granted with a state guarantee issued under the state aid scheme COVID-19, dedicated to large companies.
“EximBank always proposes concrete and efficient solutions to support the development of Romanian companies and we are glad that, through this financing, we provide to one of the most important companies in Romania and in Europe, the necessary funds for carrying out its current activities in optimal conditions. We are confident that through the tools offered by EximBank, including this state aid scheme, we can contribute significantly to the steps taken to accelerate the growth trend of the Romanian economy, and in this regard we will continue to be an active supporter of the local business environment” , said Traian Halalai, Executive Chairman of EximBank.
The unpredictable economic environment created by the consequences of the pandemic – which severely affected two of the key market segments for ALRO, namely the automotive and aircraft industries, as well as low alumina prices were the main challenges that the Romanian aluminium producer sought to overcome by implementing several measures to reduce costs and improve purchasing and sales strategies.
„ALRO’s resilience is also obtained by capitalizing on the opportunities generated by crises, as is the case of the health crisis; and in such times we have remained faithful to our strategy and we have focused on investments in innovation and in the latest production technologies and we have continued to pursue partnerships with organizations that support responsible and sustainable business development”, said Gheorghe Dobra, Chief Executive Officer ALRO.
“We welcome the implementation of the temporary framework for state aid measures to support the Romanian economy in the current COVID-19 outbreak. This will help us to maintain and improve our operations to reflect the latest EU regulatory and policy developments having alongside reliable partners such as EximBank”, said Genoveva Năstase, Chief Financial Officer ALRO.
ALRO is a subsidiary of Vimetco N.V., (the Netherlands), a global, vertically-integrated primary and processed aluminium producer. ALRO is one of the largest vertically integrated aluminium producers in Europe, having an installed production capacity of 265,000 tonnes per annum of electrolytic aluminium, 35,000 tonnes per annum of recycled aluminium and 335,000 tonnes per annum primary cast aluminium. 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, ISO 14001, ISO 45001, ISO 50001 certified for quality management and has NADCAP, as well as EN 9100 certifications for aerospace production and holds the IATF 16949 certificate for the automotive industry, ALRO’s products adhering to the quality standards for primary aluminium on the LME, as well as international standards for flat-rolled products. Starting 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 16 November 2020, ALRO is a member of ASI (Aluminium Stewardship Initiative), an international association that contributes to enhancing sustainability in the global aluminium sector.
EximBank is a specialized institution that is actively involved in supporting and promoting the Romanian business environment. Its financial instruments are dedicated exclusively to the corporate segment and can be accessed in advantageous conditions by any type of company, whether it is an SME or a large company, conducts international transactions, or addresses the domestic market. The companies also have at their disposal a competitive portfolio of treasury, cash management, trade finance and factoring products, which complete the financing and guarantee offer. At the same time, because it acts as an agent representing the state on the guarantees and insurance market, EximBank is one of the instruments through which public funds, made available by the Romanian state, support the sustainable development of the economy.