Ruschi Aluminium, the world's second-largest aluminium maker, is interested in buying the BBG Alum Tulcea alumina refinery held by Balli Group trade company, sources on the market told Ziarul Financiar.
It is likely, the above-quoted sources say, that an interesting fight for the plant in Tulcea might begin, as US trade company Marco International, which holds 41.8% in Alro Slatina aluminium producer, is also ready to make a bid.
The Russians' interest in Romanian alumina is no news, as last year Ruschi bought another alumina plant in Romania, Alor Oradea.
At present, the Russian giant which produces 2.5 million tonnes of aluminium and controls 13-15% of the world market, has annual alumina deficit of approximately one million tonnes.
Alumina is the raw material from which aluminium is produced and is obtained by processing bauxite.
BBG Alum produces some 480,000 tonnes of alumina every year, so that the deficit problem would be half solved if the Russians buy it.
"Ruschi representatives have indeed paid a technical visit to us. They have not made an offer yet, as neither have we thought of selling for the time being," Dan Dragoi, Balli chairman in Romania, told Ziarul Financiar.
BBG Alum would make a much better bargain than Alor Oradea for Ruschi, as the transport of alumina from Tulcea to Russia over the Black Sea is much cheaper.
According to the above-quoted sources, the Russians' problem is the fact that BBG Alum is producing a type of alumina (Sandy), which is too advanced for the technology of the plants part of Ruschi Aluminium.
Balli bought BBG Alum with the publicised intention of creating an integrated holding comprised of BBG Alum-Alro-Alprom Slatina in Romania.
The group says that along with the controlling interests in the Tulcea-based plant, for which it paid some $20 million, the former State Ownership Fund granted them pre-emption right for Alro's privatisation.
This right would practically enable Balli to buy the stake the State holds in Alro if it pays an amount of money equal to the one offered by the highest bidder in a possible tender.
On the other hand, Privatisation minister Ovidiu Musetescu several weeks ago said the institution he was running did not have a document to prove Balli's pre-emption right and that he did not acknowledge such right.
In case Alro and Alprom were purchased by a company other than Balli, and decide to supply Alro from a source other than BBG Alum, the Iranian group might be facing problems in Tulcea.
Since 1997, when it took over Alum, Balli has invested more than $22 million in Tulcea, most of the investments being directed to retooling to allow obtaining alumina compliant with the standards imposed by the retooling at Alro.
"Alro has not been privatised yet, so we're not giving up on our plans to buy it," Dragoi specified.
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