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23 FEBRUARY 2017 AL CIRCLE

Slovenian aluminium producer achieves double profits in spite of low revenue

EDITED BY : HEENA IQBAL 2MINS READ

Talum, a Slovenian company in Kidricevo specialised in alumina and aluminium products, has earned EUR 300m in sales revenue in 2016. Even though the company has generated 5 per cent less vs 2015 despite low aluminium price, the unaudited data shows the company doubles profits to a million euros.

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Talum chairman Marko Drobnic explained that the company’s new strategy such as a change in the product structure and purchasing and business process optimisation lead the company to success.

He commented: "We have been expanding volumes in the higher value added ranges, one of the goals in the strategy set out as early as 2012”.

Marko added that negative price trends had continued till final quarter of 2016. After the quarter, the situation enhanced therefore the current prices are above expectations.

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In 2017, Talum is planning to expand high value added primary aluminium divisions as the volume sales increased by 6% to 147,000 tonnes last year. The company aimed at getting closer to the end user and to eradicate resellers. The average annual price is at the moment above 1,800 US dollars per tonne of aluminium, up from $1,600-1,650.

Talum is further planning to invest EUR 20m in 2017 in order to improve production capacities mainly in casting. Also, the company would continue research and development for increasing sales of slugs and other products.


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EDITED BY : HEENA IQBAL 2MINS READ

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