Our strategy

Vimetco’s success is based on a longterm plan to capitalise on the increasing global demand for aluminium by acquiring production facilities in emerging markets and providing them with the development capital and management skills needed to increase productivity and generate growth. Today, Vimetco is among the top five producers in Europe and among the top ten in China, the world’s largest aluminium market.

Vimetco’s business plan focuses on delivering increased value to its shareholders, customers, employees and the community within which it operates. Its core strengths include its effective vertical integration, expertise in value-added products, favourable geographic spread and its proximity to attractive end-markets. The plan is based on the Group’s ambitious strategy for global expansion – growing its businesses both organically as well as through acquisitions.

The Group realises cost savings and operating efficiencies as well as the security of supply through vertical integration, whether for electricity, anodes, bauxite or alumina. The Group is currently exploring the feasibility of further investing in bauxite mines and in alumina refineries in West Africa. Vimetco operates its own energy plants in China and intends to build generators in Romania. Nevertheless,the management constantly monitors and compares market and thirdparty pricing to assess whether any part of the vertically integrated value chain has ceased to be beneficial to Vimetco’s overall profitability or whether certain aspects can be sourced more effectively elsewhere.

The second strategic angle is Vimetco’s focus on value-added products, of which there are two types:

1. Primary value-added products include billets, slabs, wire rod. Alro and Zhongfu, Vimetco’s Romanian and Chinese operations generate good added-value in this field because additional production costs are marginal.

2. Processed value-added products, such as plates, sheets, coils and extrusions. This is an area in which Alro shall concentrate in the future because of the excellent premia that can be achieved (3-10 times higher than primary value-added products).