Only aluminium producer in Slovakia faces threat of closure

Aluminium producer Slovalco in Žiar nad Hronom, central Slovakia, has been operating only 135 out of 226 furnaces since last Friday. The plant decreased production of aluminium by 40 percent due to high costs of electric energy, said managing director of Slovalco Milan Veselý.

Electricity expenses increased three fold y-o-y. Big electricity customers do not purchase electricity for current market prices.

“The company Slovalco operates based on a long-term contract concerning supplies of electrical energy,” said Veselý. “With this type of business, which needs stability and predictability to adopt long-term solutions, we conclude long-term contracts.”

The stability and predictability needed to conclude new long-term contracts to purchase electricity could be a problem under current legislative conditions.

Possible end without an amendment