“If Alro is unable to contract the remaining necessary quantity of energy at economically viable price levels, the company is exploring various options, including restructuring of operating process and temporarily idling the less efficient part of production capacities,” the company said in a statement.
Alro added that state-owned hydropower producer Hidroelectrica is currently supplying half of its consumption, and the rest is bought on the spot market, at high prices.
“Due to the force majeure declared by Hidroelectrica, Alro now receives approximately 50% of the required electricity from the power producer. As a result, Alro has been forced to purchase a significant quantity of energy on the day ahead market and from the balancing market (of energy bourse OPCOM),” the document reads.
The company added that all energy bought was used exclusively in the production process at Alro, Vimetco Extrusion and Alum.
“We are currently working on maintaining the continuity of business, despite the fluctuation of the electricity supply. We are confident that we will be able to find a suitable solution regarding the electricity supply and that we will be able to implement our long term development strategy in Romania,” said Gheorghe Dobra, Alro’s chief executive officer.
In order to secure energy independence, Alro owner Vimetco plans to build a cogeneration power plant on the Alum Tulcea platform, with a capacity of 250 MW.
Alro is 87.96% owned by Dutch-registered Vimetco. Another 10.03% is owned by investment fund Fondul Proprietatea (FP.RO).
Alro shares were last traded Tuesday, at RON3.15, up 5% on the day.