Slovalco might shut down
Milan Veselý, CEO of Slovalco, an aluminum smelter 55% owned by Norsk Hydro and 45% by Penta, does not rule out the option of shutting the smelter down. Its 8-year contract on power supplies expires at the end of this year; power accounts for 40% of its costs and Slovalco accounts for 8% of the total Slovak power consumption. It has to cope with low aluminum prices and growing prices of emission allowances. Last year, it managed to cut its losses by 38% to €26m and it expects a low profit this year. It plans to wind down its 226 furnaces gradually as it does not have money for investments. It is calling for state assistance (compensation for high power prices) along the same lines that smelters in Western Europe receive.
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