ALRO & Azeraluminium Forge Synergistic Partnership

ALRO, a prominent vertically integrated aluminium producer in Europe, renowned for its substantial production capacity, recently entered into a Memorandum of Understanding
Azeraluminium
AzeraluminiumImage Source – Azeraluminium

ALRO, a prominent vertically integrated aluminium producer in Europe, renowned for its substantial production capacity, recently entered into a Memorandum of Understanding (MoU) with Azeraluminium, the sole primary aluminium producer in the South Caucasus region. The primary purpose of the MoU is to facilitate mutual cooperation between the two companies, aiming to enhance their technical and economic capabilities, resulting in tangible advantages for both parties.

Amidst the challenges prevailing in the international aluminium industry, ALRO recognizes the value of forging robust partnerships that seek to identify synergies and contribute to the preservation and potential expansion of their respective businesses. Marian NĂSTASE, Chairman of ALRO's Board of Directors, emphasized the significance of the MoU, stating that it serves as a framework for collaboration with Azeraluminium. The companies intend to explore various avenues where their expertise and production chains can be harnessed to supply raw materials to Azeraluminium while also considering the development of a gas-fired power plant on ALRO's premises.

The MoU between Azeraluminium and ALRO aims to foster a mutually beneficial relationship with a focus on raw material supply, sales of aluminum products, and energy production. Maksim Javadov, CEO of Azeraluminium LLC, expressed his belief in the power of collaboration and shared values, highlighting ALRO as a like-minded partner. This partnership marks a significant step forward in Azeraluminium's strategic growth plans, opening up numerous possibilities for synergies and shared successes. Javadov extended his gratitude to all stakeholders involved in facilitating this partnership and expressed optimism for a fruitful and enduring relationship with ALRO.

According to the terms outlined in the MoU, both parties will explore the potential for ALRO Group to supply baked anodes and alumina to Azeraluminium through a medium to long-term agreement spanning two to five years. The MoU also includes provisions for cooperation in processing, marketing, and sale of the continuous casting coils produced by Azeraluminium in Romania.

Furthermore, the collaboration between ALRO and Azeraluminium may extend to a potential partnership involving an Azerbaijani entity for the development of a gas-fired power plant on ALRO's premises. This initiative aligns with ALRO's vision for sustainable and efficient energy production.

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