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Russians collect 34m-euro dividends from Alro

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29.03.2011, 23:48 30

The Vimetco group, held by Russian businessman Vitali Machitski,will collect 141 million lei (34 million euros at an exchange rateof 4.1 lei/euro) in dividends from aluminium smelter Alro Slatina(ALR), which it controls, with the plant benefiting from cheapenergy from Hidroelectrica.

Alro last year posted a 160 million-lei (38 million-euro) netprofit, double as much as in 2009, with the company managementproposing that the entire profit be distributed to shareholders,according to the notice to attend the GM published on the StockExchange. The bulk of the dividends will go to the Russians, whocontrol 88% of Alro, while Fondul Proprietatea (Property Fund -FP), which holds 10%, will collect 3.4 million euros.

The rise in the plant's profit came amid a 28% turnoverincrease, to 1,8 billion lei (425 million euros), as a result ofthe increase in the price of aluminium on internationalmarkets.

In addition, Alro benefits from a long-term contract sealed withHidroelectrica, producer of the cheapest energy in Romania, whichprovides it with the entire amount of energy it needs. Under thecontract, Alro has paid a price lower than the price paid on theOPCOM market in the past few years, the only free energy market inRomania. Alro's energy spending accounts for around 30% of itsoverall costs.

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