ALUM invests in reducing energy consumption

• Total investment programme for 2018 of USD 14.4 million, out of which USD 1.7 million in specific programmes to increase energy efficiency

• Over the past seven years, Alum reduced the natural gas consumption by 28%, while the electricity usage was down by 19% over the past five years

Tulcea, 23 October 2018 – ALUM S.A. (BSE, ATS segment - AeRO: BBGA, “the Company” or  “ALUM”) the only calcined alumina producer in Romania, continues its modernization and upgrading programme, by investing USD 14.4 million this year in environmental protection measures, technological processes, reduction of the specific consumption of heat, electricity and raw materials and for products diversification. Besides the technological upgrade with a direct impact on specific consumption, the Company has a USD 1.7 million programme to increase its energy efficiency.

“We have a continuous improvement strategy for ALUM, aimed at increasing the overall efficiency, focusing both on expanding our products portfolio and on reducing the industrial footprint via energy efficiency and ecological programmes”,said Gheorghe Dobra, CEO ALUM. “While we registered good results in decreasing the electricity and gas usage in the past years, we continue to invest in best available ­technologies ­that will further support our goals of improving the specific consumption rates which led as well to significant ecological effect and increase the overall competitiveness of the operations”, added Gheorghe Dobra.

This year, ALUM continues the implementation of a series of upgrades including installing new natural gas burners at Steam Boiler no. 1, acquisition and installation of low NOx combustion system on the C2Ap1 boiler, optimization of steam lines and installing steam traps in two Digestion batteries. Moreover, the Company modernizes the 6 kV electrical installations and installs frequency converters in order to increase the energy efficiency.

These measures which are in line with BAT (“Best Available Techniques”) are part of a complex programme, that ALUM developed over the past years with direct results on energy parameters. As such, the alumina refinery managed to reduce the specific heat consumption for technology steam boilers by approximately 41% over the last 12 years, while the natural gas consumption decreased by 28% over the past seven years. The commissioning of high efficiency cogeneration systems also led to a cut down of 19% in the electricity usage, over the past five years. The industrial water consumption decreased, as well, almost six times, over the past eight years.

For further information, please contact:

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

About:

ALUM

ALUM is the only Romanian producer of calcined alumina and is part of ALRO Group. The calcined alumina is used for the production of aluminium and ALUM 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. 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