Hidroelectrica to supply Alro with 3 TWh energy quantity by 2018 for annually calculated price
Alro Slatina, the biggest aluminium producer in Central and Eastern Europe, completed the negotiations with hydro-electric power producer Hidroelectrica for the supply of an energy quantity of 3 TWh by 2018 for a price to be annually calculated, based on various factors, Alro informs in a release sent to the Bucharest Stock Exchange (BVB) on Monday.
The aluminium producer signed an additional contract to the contract with Hidroelectrica, with all the energy quantity to be strictly used in the production process and in the current activity of the group in Romania.
The long-term contract offers predictability and contributes to the implementation of the group’s development strategy for Romania, according to the Alro representatives.
The energy cost formula acceptable for both parties takes into account a series of factors, including the quotation of aluminium on the London Metal Exchange (LME) and the OPCOM quotations.
Alro is a subsidiary of Vimetco N.V, vertically-integrated multinational corporation producing primary and processed aluminium.
Alro is the major aluminium producer in Central and Eastern Europe, with an installed production capacity of 265,000 tons per year.
The main outlets for Alro products are the European Union (Hungary, Poland, Greece, Germany and Romania). The company exports to the United States and Asia.
Hidroelectrica cancelled several contracts with energy traders, which were deemed to be loss-making for the Romanian State, but also damaging to the company, which is why the authorities decided to place the company into insolvency.
One of the contracts still under negotiation was the contract sealed with Alro Slatina and the aluminium producer was supposed to come up with a new price offer by August 15.
Hidroelectrica filed for insolvency on June 15, 2012.