Vimetco’s Romanian subsidiary, Alro, negotiates refinancing loan agreement with EBRD
25.05.2010
Amsterdam, 25 May 2010 – Vimetco NV (LSE: VICO), the global producer of primary and processed aluminium products, today announces that its Romanian subsidiary, Alro SA, (BSE: ALR), the biggest aluminium producer from Central and Eastern Europe, is negotiating an agreement with the European Bank for Reconstruction and Development (EBRD) aimed at refinancing most of the company’s existing debt. The EBRD is considering providing financing of up to USD 180 million, of which at least USD 105 million will be syndicated to commercial banks (including current lenders to the company).
The EBRD facility would help bring stability to Alro’s financing structure and would further consolidate the company’s position, allowing it to continue its development programme.
The company has secured the supply of raw materials, has achieved a good cost structure and is now considering refinancing its debt. All these measures allow Alro to further pursue its long term programme of focusing on higher added value products, improving the quality and product range at the plant in Slatina.
The EBRD funds would enable Alro SA to proceed with a USD 50 million investment programme from 2010 to 2012, which will focus on improving the quality and range of its products, including a number of projects aimed at improving energy efficiency, as well as an environmental and health and safety action plan.
The EBRD has conducted a thorough due diligence and the project will be put forward for consideration by the Bank’s Board of Directors on 8 June 2010.
Alro believes this proves on one hand that the measures the company implemented brought optimal results, and on the other hand that its long term strategy is viable and Alro have the strength to implement it.
In 2009, Alro reported a net profit of RON 78 million (approx USD 25.6 million), and a turnover of RON 1.41 billion (USD 462.5 million). Alro’s primary aluminium production was over 201,000 tonnes.
For further information please contact:
Florenta Ghita
Premium Communication
Bucharest Phone +40 (0)21 411 01 52
e-mail : florenta.ghita@premiumpr.ro
Bojana Todorovska
EBRD Press Office
London Phone: + 44 207 338 6940
e-mail: todorovb@ebrd.com
About Vimetco
Vimetco N.V. is a global, vertically integrated producer of primary and processed aluminium products with major production assets in Romania, Sierra Leone and China, and a holding company in The Netherlands. Vimetco NV controls an aluminium production capacity of 1.1 million tonnes pa. Vimetco’s shares are listed on the London Stock Exchange (LSE: VICO). www.vimetco.com
About Alro
Alro SA is subsidiary of Vimetco, a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium production facility in Central and Eastern Europe measured by volume with an installed production capacity of 265,000 tonnes per year
The main markets for the aluminium manufactured by Alro SA are within the EU (Hungary, Poland, Greece, Germany and Romania). The Company also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificate for aerospace production organizations, its products respecting the quality standards for primary aluminium on the London Metal Exchange – LME, as well as the international standards for flat rolled products.
About EBRD
The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. www.ebrd.com
The EBRD facility would help bring stability to Alro’s financing structure and would further consolidate the company’s position, allowing it to continue its development programme.
The company has secured the supply of raw materials, has achieved a good cost structure and is now considering refinancing its debt. All these measures allow Alro to further pursue its long term programme of focusing on higher added value products, improving the quality and product range at the plant in Slatina.
The EBRD funds would enable Alro SA to proceed with a USD 50 million investment programme from 2010 to 2012, which will focus on improving the quality and range of its products, including a number of projects aimed at improving energy efficiency, as well as an environmental and health and safety action plan.
The EBRD has conducted a thorough due diligence and the project will be put forward for consideration by the Bank’s Board of Directors on 8 June 2010.
Alro believes this proves on one hand that the measures the company implemented brought optimal results, and on the other hand that its long term strategy is viable and Alro have the strength to implement it.
In 2009, Alro reported a net profit of RON 78 million (approx USD 25.6 million), and a turnover of RON 1.41 billion (USD 462.5 million). Alro’s primary aluminium production was over 201,000 tonnes.
For further information please contact:
Florenta Ghita
Premium Communication
Bucharest Phone +40 (0)21 411 01 52
e-mail : florenta.ghita@premiumpr.ro
Bojana Todorovska
EBRD Press Office
London Phone: + 44 207 338 6940
e-mail: todorovb@ebrd.com
About Vimetco
Vimetco N.V. is a global, vertically integrated producer of primary and processed aluminium products with major production assets in Romania, Sierra Leone and China, and a holding company in The Netherlands. Vimetco NV controls an aluminium production capacity of 1.1 million tonnes pa. Vimetco’s shares are listed on the London Stock Exchange (LSE: VICO). www.vimetco.com
About Alro
Alro SA is subsidiary of Vimetco, a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium production facility in Central and Eastern Europe measured by volume with an installed production capacity of 265,000 tonnes per year
The main markets for the aluminium manufactured by Alro SA are within the EU (Hungary, Poland, Greece, Germany and Romania). The Company also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificate for aerospace production organizations, its products respecting the quality standards for primary aluminium on the London Metal Exchange – LME, as well as the international standards for flat rolled products.
About EBRD
The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. www.ebrd.com
