Since mid-February 2020, Alro and its units have been implementing procedures to prevent COVID-19 infections and operating under normal parameters, with a fully operational distribution chain.
The decrease in demand for processed aluminium products was partly offset by higher demand for primary products (especially wire rod, which is an essential component for the public utilities sector), with sales volumes growing 3.7% on the year in the first quarter of 2020. Both extruded products and the bauxite segment reported good results and higher quantitative sales.
Per the 2020 report, Alro will continue to implement its cost reduction plan started before the outbreak of the COVID-19 pandemic and will focus on production optimization to better respond to market demands with a rapid evolution from the perspective of both supply and demand, and by further reducing the domestic energy consumption.
On the Romanian market, the volatility of the electricity market has continued to impact Alro’s turnover. On May 11, 2020, The European Commission approved, under EU State aid rules, Romanian plans to partially compensate energy-intensive companies for higher electricity prices resulting from indirect emission costs under the EU Emission Trading Scheme (ETS).
ALRO Slatina is 54.2% owned by Vimetco Group, controlled by Russian billionaire Vitali Matsitski, while Paval Holding, held by Paval brothers, the owners of do-it-yourself retailer Dedeman, owns a 23.2% stake. Investment fund Fondul Proprietatea is the third largest shareholder, holding 10.2% of ALRO’s share capital.
The companies part of ALRO Group are: ALRO S.A. – manufacturer of aluminium, Alum S.A. – producer of alumina, Sierra Mineral Holdings I, Ltd. – bauxite mining, Vimetco Extrusion S.R.L. – extrusion business line, Conef S.A. – holding and management company, Global Aluminium Ltd. – holding company and Bauxite Marketing Ltd – marketing. Having this structure, the Group created an integrated production chain assuring the raw materials for ALRO.
The company ended 2019 with a loss of RON67 million, on a group level, and sales of RON2.8 billion.
Alro Slatina has a market value of RON1 billion and its shares have been trading down 35% since the start of 2020.