ALUM focuses on increasing efficiency and on environmental protection projects

• Investments of RON 59 million for 2018 in technology and environmental protection

• The Company celebrated 45 years since the commissioning of its alumina refinery

Tulcea, 19 July 2018 – ALUM S.A. (BSE, ATS segment - AeRO: BBGA) the only calcined alumina producer in Romania, budgeted investments programme for 2018 of RON 59 million, for technological upgrade and modernizing its production process, in line with the Company’s strategy of increasing overall efficiency and environmental protection.

 “We are proud to celebrate 45 years of activity at our plant in Tulcea and to be part of a transformation process that qualified ALUM as a major asset for the local business environment and for the Romanian economy, in general, while being a strategic company for ALRO Group, as well”, said Gheorghe Dobra, CEO ALUM. “We implemented an extensive investment programme at ALUM, aimed at increasing its efficiency and complying with the environmental regulations in place. Besides the actual investments in technology, a crucial role in this journey was played by our employees, who made possible this inauguration and all the achievements of the Company. This programme will continue, focusing on technology and environmental related projects”, added Gheorghe Dobra.

The upgrading projects, started in 2007, resulted in significant increase in overall efficiency, increase in products’ quality and production capacity and reduction of production costs, while placing a strong focus on the safety of its workers and operations. The investments covered two major areas: technology and environment. During 2007-2009, ALUM built its internal gas network and converted the combustion systems of steam boilers and calcined equipment from the use of heavy fuel to the use of natural gas; it increased the static calcined production capacity and acquired & installed equipment for streamlining the technological flow.

Starting with 2009 to date, the Company invested in technology and environmental protection measures, reducing the emissions, the use of water for technological processes and increasing the safety in operating the red mud storage. The investments also covered the equipment operational safety measures, the increase of energy efficiency and the commissioning of new technology that allowed ALUM to diversify its products portfolio.

As such, the energy specific consumption decreased by 15.77% in 2017, compared to the 2013 level. The technological investments resulted also in significant cut down of CO₂ emissions per each alumina tonne produced.

The investment programme also covered dedicated environmental projects,that targeted, among others, the storage of the red mud resulting from the alumina production process. From 2009 onwards, ALUM upgraded the red mud storage facility within a major project that was developed in collaboration with specialists from Australia Hatch Ltd., Technical University of Civil Engineering Bucharest and Iprolam S.A. Bucharest, that consisted in building an installation dedicated to the red mud storage. ALUM consolidated the dykes, implemented a partial ecological closure in the main dam area and planted trees, built a rainwater collection and diverted the channel for flood prevention, implemented a water spray system for wetting the surface of the red mud against dusting, while implementing a ground water quality monitoring system, as well.

Nowadays, the Company aims to reach the next level technology and collaborates with research institutes to identify solutions to convert the red mud into a commercially usable product.

For further information, please contact:

www.alro.ro

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

About:

ALUM

ALUM is the only Romanian producer of calcined alumina, used for the production of aluminium and has an alumina refinery with a production capacity of 600,000 tonnes of alumina per year. The alumina produced by the company is supplied both on the domestic market to ALRO S.A., part of the Vimetco Group, and internationally. ALUM’s shares have been traded on the Bucharest Stock Exchange since 1997.

ALRO Group

ALRO S.A. and its subsidiaries are collectively referred to as ''ALRO Group'' or ''the Group''. The companies part of ALRO Group are: Alro S.A. – the aluminium producer, Alum S.A. – the alumina producer, Sierra Mineral Holdings I, Ltd. – the bauxite mining company, Vimetco Extrusion S.R.L. – extrusion processing business line, Conef S.A. – Alro share portfolio management, Global Aluminium Ltd. – holding entity and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for ALRO.

      Chairman of Board of Directors/ CEO                                               CFO

                     Gheorghe DOBRA                                                     Mihaela DURALIA