Romanian aluminum smelter Alro SA (ALR) may temporarily halt some production, lowering total capacity, or restructure operations as power supplies from hydropower generator Hidroelectrica SA falter.
Alro, majority owned by Vimetco NV (VICO), is trying to avoid an output cut as Hidroelectrica is only providing about 50 percent of needed electricity, forcing the smelter to buy the rest from the overnight market at much higher costs, the company said today in a filing to Bucharest Stock Exchange.
“We are focusing now on maintaining the activity,” Alro Chief Executive Officer Gheorghe Dobra said in the statement. “We are confident that we’ll find an acceptable solution regarding the electricity supplies, and we’ll be able to implement our long-term development strategy inRomania.”
Alro plans to build its own gas-fired power plant with a total capacity of 250 megawatts after it received financing from the European Bank for Reconstruction and Development and other commercial banks, the company said. The company completed the first step in selecting general contractor for the project.
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