Aluminum exchange drop cuts into Alro’s business

According to the statement sent to the Bucharest Stock Exchange (BVB), the company’s turnover reached RON 1.52 billion (almost €419 mln) in this year’s first three quarters, down five percent year-on-year.

“In the past months, the international market registered a drop in demand for aluminum, and the company’s quotation on the London Metal Exchange plunged by some 30 percent, while production costs remained high,” said Marian Nastase, Vice Chairman of the Alro Slatina Board of Directors.

Alro’s main shareholder, the international industrial and investment group Vimetco NV, announced last week that it is considering a 25 percent drop in Alro’s production in 2009, which will lead to a significant personnel cut, due to the economic crisis. Nastase said that the company will focus only on its basic activities and services and core assets.