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Slovalco signs a contract on electricity supply until 2021
9 Oct 2013 Flash News
Slovalco has signed a long-term electricity supply contract with power utility Slovenské Elektrárne (SE).
Slovalco, the Slovak aluminium producer, wants to achieve such total price of electricity which is its most important expenses item that would equal the level of other European producers. “Given the significant decline in the selling price of aluminium, electric-power price is a determining factor in price competitiveness of a manufacturer in a global context,” the company said, as quoted by the SITA newswire.
“The contract provides for the supply of electricity to the aluminium smelter, totalling 19 terawatt-hours for a period of eight years, from 2014 to 2021," Slovalco informed SITA on October 8. The company did not want to specify the price of electricity. “The price is a confidential matter,” said the company.
Slovalco will thus presumably continue producing aluminium in its Žiar nad Hronom factory. “The signing of the contract for the supply of electric power until 2021 will help maintain production of aluminium in Žiar nad Hronom, and thus preserve 3,000 jobs connected with the production and processing of aluminium," said Slovalco CEO Milan Veselý.
In addition to the contract for electricity supply, the company is currently still handling other fees, including the electricity transmission fee. This July, Slovalco and SE signed a letter of intent to conclude a contract for power supply. According to the power utility, the signing of the memorandum was the first step to maintaining production of aluminium The currently valid contract for the power supply at a fixed price for Slovalco came into force in 1994, expiring at the end of this year.
Current shareholders in Slovalco are Hydro Aluminium and ZSNP Žiar had Hrnom. Slovalco produces annually about 160,000 tons of primary aluminium. In 2012, it sold 178,672 mega tonnes of finished aluminium products. Exports accounted for almost 81 percent of total sales.
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