Vimetco announcement regarding Romanian subsidiaryMon, 06/15/2015
Amsterdam, 6 June 2015 - Vimetco N.V. (LSE: VICO), the global producer of primary and processed aluminium products, notes the announcement of its Romanian subsidiary, aluminium producer Alro S.A. (BSE: ALR, “The Company” or “Alro”), made to the Bucharest Stock Exchange.
Based on the announcement made to BSE, Vimetco notes that Alro has informed the market regarding the conclusion of an investigation conducted by the European Commission (EC) in relation to the Romanian power generator, Hidroelectrica and its electricity supply contracts with certain traders and industrial consumers.
As per the EC press release sent out on June 12th, “following an in-depth investigation, the European Commission has concluded that electricity supply contracts signed by the state-owned Romanian electricity generator Hidroelectrica with certain electricity traders and industrial customers did not involve state aid within the meaning of the EU rules”. Moreover, “in particular, the analysis revealed that Hidroelectrica charged prices that were fully in line with the benchmark market price to nine customers” among them Alro as well.
The EC press release also states that “Hidroelectrica charged prices that were fully in line with the benchmark market price” and that “the Commission therefore concluded that none of the sale contracts under examination involved state aid”.
The conclusions of the EC investigation come as a confirmation of Alro’s position, as presented from the beginning of the proceedings. The Company had a correct commercial relationship with Hidroelectrica, complying with all legal requirements that regulate the energy sector in Romania.
Throughout the investigation, Alro cooperated in a professional and transparent manner with the European Commission and presented all the documents that the authorities required, documents that proved the Company’s position and led to the conclusion that there is no state aid involved in the contracts with Hidroelectrica.
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Vimetco N.V. is a global, vertically integrated producer of primary and processed aluminium products with production assets in China, Romania and Sierra Leone, and a holding company in The Netherlands. Vimetco N.V. controls annual production capacities of up to one million tonnes of electrolytic aluminium, 340,000 tonnes of processed aluminium products, 600,000 tonnes of alumina, 1.7 million tonnes of bauxite, 2.25 million tonnes of coal, 3 x 300 MW of electricity and 318,000 tonnes of baked anodes per year. Vimetco’s global depositary receipts are listed on the London Stock Exchange (LSE: VICO).