The translation to English is: "Alro has signed the refinancing agreement with the European Bank for Reconstruction and Development."
Friday, 08/06/2010 - 10:11
Slatina, August 6, 2010 – Alro SA (BVB: ALR), the largest aluminum producer in Central and Eastern Europe, has signed a syndicated loan with the European Bank for Reconstruction and Development (EBRD), which refinances a large part of the company's existing debt. The European Bank for Reconstruction and Development is providing $75 million in its own name, while $105 million will be syndicated to commercial banks.
“The refinancing agreement signed with the EBRD provides the company with a solid foundation for continuing its development strategy, while also strengthening the financial structure,” stated Marian Năstase, Vice Chairman of Alro's Board of Directors. “We are pleased with the results of the negotiations, as they represent a recognition of the company’s stability, growth potential, and the robustness of the program implemented to overcome the international crisis. We are determined to continue our long-term strategy of vertical integration and focusing on high-value-added products.”
Alro has implemented a strong program that helps the company strengthen its position in the international aluminum market. The company has secured its raw material resources, restarted the alumina refinery in Tulcea, and established a solid cost structure by renegotiating contracts with suppliers and improving production processes. Now, the aluminum producer has completed the restructuring of its loans.
All these measures provide the company with the basis for continuing its long-term development program, aimed at increasing the production of high-value-added goods, improving quality, and expanding the product range at the Slatina plant.
Alro achieved a net profit of 50.5 million lei (approximately $16.9 million) in the first quarter of this year, compared to $8.3 million in the first quarter of 2009. The company’s turnover in the first quarter of 2010 was 414 million lei (approximately $139 million), compared to $118.7 million in Q1 2009.
For more information, please contact:
Florenta Ghita
Premium Communication
Bucharest
Phone: +40 (0)21 411 01 52
Email: florenta.ghita@premiumpr.ro
About Alro
Alro is a subsidiary of Vimetco N.V., a global primary and processed aluminum company, vertically integrated. Alro is the largest aluminum producer in Central and Eastern Europe, with an installed production capacity of 265,000 tons per annum.
The main markets for Alro's products are the European Union (Hungary, Poland, Greece, Germany, and Romania). The company exports to the United States and Asia. The plant is certified with ISO 9001 for quality management and has NADCAP and EN 9001 certificates for its production units for the aerospace industry, with its products meeting the quality standards for primary aluminum of the London Metal Exchange (LME) as well as international standards for flat-rolled products.
About EBRD
The EBRD, owned by 61 countries and two intergovernmental institutions, supports the development of market economies and democracies in countries from Central Europe to Central Asia. For more information, visit www.ebrd.com.
