Romania’s only aluminum producer Alro Slatina, controlled by Russian group Vimetco, accumulated losses of USD 40 million in the first months of the year and risks being closed because of the high energy cost, according to the trade unions quoted by Ziarul Financiar daily.

The weaker demand caused by the economic slowdown induced by the coronavirus outburst contributed to the losses, union leader Constantin Popescu added. He claims that the energy price increased by 50% over the three years and the cost related to the emission certificates surged more than five times.

The union leader warned that the company will have to close unless the Government keeps its promise and returns the 15% share of the money paid for the emission certificates - a practice that he claims to be common among European states in the case of energy-intensive industries. It is not only Alro that is entitled to this money but all the large industrial consumers, he explained.

The Government reportedly promised to pay this money in August - which trade union leader Popescu says it's too late.

Alro recorded losses of RON 68 mln (EUR 14.3 mln) in 2019, compared to a net profit of RON 235 mln (EUR 50 mln) in 2018, as the turnover declined and the costs increased.

editor@romania-insider.com

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