The company posted record revenue in the first half, made possible by the contracts signed with international car part manufacturers, and exports most of its production.
“The investment will be partly made with non-repayable funds available through the Sectoral Operational Program ‘Increasing Economic Competitiveness,'” said Cornel Predut, head of the financial department of Altur Slatina. “The value of the program is about RON22.1 million, of which eligible expenses amount to RON15.6 million. Non-repayable funds account for half of this amount.”
The new equipment is mainly necessary to upgrade and complement the existing machinery of the department handling aluminum automotive part casting, which is the company’s main business.
Altur shareholders have recently approved taking out a RON14 million (EUR3.3 million) loan from Raiffeisen Bank to make the required investments, while the rest of the money should come from non-repayable funds.
Most of Altur’s production goes to US automotive component giant TRW Automotive, which generated about 70% of the Romanian plant’s business last year.
The Slatina-based company’s products reach such brands as BMW, Mercedes, Audi, Volkswagen, Renault, Skoda and Fiat via major international groups like TRW, Continental Teves and Hagelmayer. One of Altur’s main clients in Romania is Dacia Renault.
The company’s sales went up 30.6% in the first six months of 2011 to RON72 million (almost EUR17 million). Operating income doubled to RON3.5 million but was eroded by financial losses that reached RON2.1 million. The RON1.1 million net profit in the first half is 36% lower compared with the same time last year. (EUR1=RON4.2657)
(English version by Loredana Fratila-Cristescu; Editing by Radu Bostan)