Acasă » General Interest » Alro cuts primary aluminum production in 2022 due to the situation on the energy and gas markets

Alro cuts primary aluminum production in 2022 due to the situation on the energy and gas markets

28 December 2021
General Interest

Alro will reduce its primary aluminum production activity next year due to the situation on the energy and gas markets, but will implement technological measures to allow a quick and efficient restart when conditions in the energy sector return to normal, according to a release of the company sent to the Bucharest Stock Exchange (BVB).

In this sense, the production activity of primary aluminum will be reduced, from five electrolysis halls to two halls, with the implementation of technological measures that will allow a quick and efficient restart when energy market conditions return to normal, according to Agerpres.

In terms of the product portfolio, the company intends to maintain or even increase the portfolio of processed products and reduce the portfolio of primary products, so that a balanced and efficient production mix results.

According to the company, in 2022, measures will be implemented to reduce costs and streamline the activity, and the quantities of primary metal that will no longer be produced will be partially offset by recycled metal or primary metal purchased from third parties.

“The company appreciates that some of its suppliers and customers will be affected by the proposed measures, so it intends to engage in constructive discussions with them in order to reduce the impact and ensure the conditions for resumption of capacity,” the statement said.

At the same time, the company’s management says that it does not consider for the time being dismissals of the employed staff, but only measures for the efficient use of labor, measures that may include periods of technical unemployment or the advancement and accumulation of revisions and repairs.

Regarding the ongoing investments, the company emphasizes that it will focus only on those investments that will bring immediate gains and improvements to its business or that are necessary in order to comply with safe and legal operation. The other investments will be postponed for a later date, depending on the developments in the economy.

“The company’s management expresses confidence that the company will successfully go through the current difficult period and will inform investors and the interested public in advance about the evolution of its situation, in accordance with the rules of the capital market,” say the company’s representatives.

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