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Alro celebrates 20 years of listing at the Bucharest Stock Exchange

By Theo Moreni

Alro S.A. (BVB symbol ALR, "Company" or "Alro"), the largest aluminium producer in continental Europe (excluding Russia and the Scandinavian Peninsula), celebrates 20 years of listing the Company's shares on the Bucharest Stock Exchange (BVB).
"The fact that Alro's shares are listed for 20 years at the Bucharest Stock Exchange is, besides a reason to be proud, a proof of the solidity of the Company. In these 20 years, Alro has transformed itself from a primary aluminium producer into a vertically integrated company providing high quality aluminium for the aerospace industry,"said Gheorghe Dobra, CEO Alro S.A. "This brings value to the shareholders, the employees, the communities in which Alro works and the Romanian economy in general. We have gone through economic crises that have led to the shut down of some of our competitors in Europe, we have succeeded, through massive investments, through internal research programs and thanks to our employees, to increase our efficiency, expand our product portfolio, and enter exclusive markets. This strategy will continue in the long run, focusing on diversifying the portfolio, increasing efficiency and reducing environmental footprint. "
Cumulatively, in the 20 years of listing on the BVB, Alro registered a turnover of 10 billion dollars, a net profit of 780 million dollars and total investments of over 680 million dollars, of which 570 million dollars since the entry into private ownership, respectively since 2002. Total electrolytic aluminium production was four million tons, and casted aluminium, over 4.5 million tons.
Alro has transformed itself from a simple primary aluminium producer into a vertically integrated company with its own bauxite mine in Sierra Leone, its own alumina refinery - Alum Tulcea and its own aluminium processing division.
The massive investments made by the Company allowed Alro to increase its production of electrolytic aluminium from 163,000 tonnes in 1997 to 207,000 tonnes in 2016. The Company has increased its supply of high added-value aluminium both in primary and in processed aluminium segments. Thus, the production of ingots (cheap products) decreased from 105,000 tons to 8,000 tons, meaning 12 times. In contrast, aluminium wire production has grown about three times, and that of slabs, more than six times. In the processed segment, the extruded aluminium production increased 5.5 times and the flat-rolled products more than four times during the mentioned period. Alro also relied on increasing the quality and mix of products so that it could enter new markets such as the car manufacturing or the aerospace industry. The Company is NADCAP certified, demonstrating that Alro products meet stringent quality standards imposed by the aerospace industry.
In addition to investment in equipment, Alro has also focused on implementing solutions to reduce specific consumption, with positive effects both in terms of operational efficiency plan and in terms of environment. Thus, electricity consumption decreased by 1,000 kWh per ton of electrolytic aluminium. In the primary aluminium division, the specific consumption of natural gas was reduced by 2.5 times, and in the processed aluminium division, more than 10 times. Industrial water consumption has fallen more than five times in primary aluminium segment. In addition, electricity consumption has been reduced more than four times in processed aluminium. Starting 2013, Alro commissioned ECO Recycling unit to process aluminium waste with a specific electricity consumption 95% lower than for electrolytic aluminium production.
Investments made by the Company have also had a positive impact on the environment, with Alro reducing its greenhouse gas emissions more than 85 times compared to 1997. Moreover, the Company obtained the Integrated Environmental Authorization No. 1 on the Oltenia region. In 2016, this authorization was renewed without a compliance program. The positive impact on Alro's communities is not limited to reducing the environmental footprint. The aluminium producer has sponsored projects of over 9.5 million dollars in health, education, and environment areas.
Alro continues to have a long-term development strategy that provides total investments over 190 million dollars over the period 2017-2021, of which over 100 million dollars for energy efficiency programmes. Thus, the Company will adopt the concept of "Green Factory", which aims at using state-of-the-art eco-technologies available on the market, which will enable it to produce high and profitable aluminium. In addition, they will contribute to meeting Alro's close to zero-waste and zero-emission targets. (rbj/16.10.2017)

Alro registered a net profit of RON 67 million, in 2016

By rbj

Alro S.A. (BSE: ALR, “the Company” or “Alro”), the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), registered a net profit of RON 67 million, in 2016, compared to a net loss of RON 24 million, in 2015. The adjusted net profit* was of RON 101 million, in 2016, compared to RON 45 million, in 2015. The Company’s turnover registered a slight decrease to RON 2.1 billion, from RON 2.3 billion, in the previous year.

„Even if 2016 was a year marked by an unstable macroeconomic climate and lower aluminium prices at international level, it was an important year in Alro’s history, being the first year with a profit after four consecutive years of losses” said Marian Nastase, President of the Board of Alro. “The successful finalization of the European Commission’s investigation in respect of Alro’s contracts signed with the electricity producer Hidroelectrica and the implementation of the exemption scheme for the big electricity consumers from paying a percentage of 85% of the green certificates mandatory quota, contributed as well to the Company’s sustainable growth. We will continue to increase our investments in production capacities, in projects of environmental protection, of energy efficiency, but also in projects of research and development that will help us provide our customers with high quality products and compliant with the most sophisticated technological requirements”.

In 2016, the international aluminium market registered a quotation decrease, the average LME price reaching USD 1,605/tonne, compared to USD 1,661/tonne, in 2015. The investments done by the Company over the past years to increase the efficiency of the operations and the capacity of the recycling unit, as well as to expand the products portfolio, continued in 2016 as well, and helped Alro maintain its competiveness on the international markets.

At the same time, this year’s results reflect Alro’s efforts to focus on the high value added products and on cost reduction by optimizing the production processes and also by renegotiating more favourable conditions for the contracts signed with our suppliers. Thus Alro reported a net profit of RON 67 million and a level of EBITDA of RON 247 million (compared to a loss of RON 24 million, respectively a level of EBITDA of RON 224 million in 2015).

In respect of Alro Group, the net profit was RON 71.5 million, compared to a loss of RON 18 thousand in 2015. The Group reported in 2016 consolidated sales of more than RON 2,3 billion down from sales of more than RON 2,4 billion, in 2015. The Group’s adjusted net profit for 2016 was RON 100 million, compared to RON 77 million recorded in 2015. The operational results were constant in 2016, with EBITDA margin reaching 12.7%, compared to 12.6%, in 2015.

An additional recognition of Company’s products quality is the fact that in 2016, Airbus, the leading aircraft manufacturer selected Alro as a supplier of aluminium. The agreement is for a multi-year period, starting 2017. Under the terms of the contract, Alro will supply Aluminium Flat Rolled Products for aircraft manufacturing.

Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), having an installed production capacity of 265,000 tonnes per year.

The main markets for the products manufactured by Alro are within the EU (Germany, Hungary, Poland, Greece and Romania). Alro also exports to the USA and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificates for aerospace production organizations. Alro’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

The companies part of Alro group are: Alro – the aluminium producer, Alum Tulcea – the alumina producer, Siera Mineral Holdings I, Ltd. – the bauxite producer, Vimetco Extrusion – extrusion products processor, Conef, Global Aluminium Ltd. and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for Alro.(rbj/28.03.2017)

HUF HAUS wins ‘Home of the Future’ award for its innovative ice heating system

By rbj

HUF HAUS won the “Home of the Future” trophy at the Association of Gas Safety Managers (AGSM) Supplier Excellence Awards 2016, for its heating with ice installation. This innovative system can serve as a complete heat source and demonstrates how sustainable living can be achieved through contemporary architecture and cutting-edge technology.

“It is with great honour that we receive the ‘Home of the Future’ award as this comes as a recognition for the efforts of our highly skilled specialists to constantly develop in-house new technologies that meet our clients’ wishes. Throughout their striving endeavours, together with our trust-worthy partners, HUF HAUS became a standard of modern architecture all over the world with a tradition of more than one century of excellence“, said Georg Huf, Managing Director of HUF HAUS.

This innovative and first-of-its-kind technology has been installed at the HUF HAUS show house located in Weybridge, Surrey (UK) and it was designed in collaboration with Viessmann, choosing its ice store system, a new and easy-to-install package that supplies a renewable heat source to heat pumps for heating or cooling a building and heating hot water.

The system includes one or more tanks, equipped with one extraction and one regeneration heat exchanger, which are filled with 10 m3 of water and set into the ground. During the phase transition of water to ice, energy is harvested, and one ice store of approximately 10 m3 generates a heat gain equal to around 100 litres of fuel oil. This innovative method, together with a solar air absorber can provide a full and complete heat source.

The AGSM Supplier Excellence Awards, which take place each year in UK, recognise the importance of collaboration and innovation within the heating industry. Members of the Association are responsible for providing safe, sustainable, affordable warmth to two and half million homes and in public buildings across the UK.

HUF HAUS is the market leader for contemporary post-and-beam architecture in Europe. The company produces about 100 houses per year (single family homes as well as commercial buildings), of which circa 40% are exported worldwide, even to China. In the year 2015, the company, which has a staff of 430, generated a turnover of € 80 million. The name HUF HAUS represents the dedication and aspiration of a family, which has been operating and shaping the business for nearly 105 years, now currently in the third generation.(rbj/2017.01.19)

The Romanian Business Journal
Constantin Radut
Editor in Chief
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