The investment plan that will strengthen its growth path in Greece and mainly abroad, and the plans for Alufond and the further reduction of borrowings, were among other things analyzed by the head of the group, George Mylonas, in a presentation for Alumil yesterday. In detail, Mr. Mylonas said that following the €87 million investments that Aluminium has implemented over the last six years—and exclusively with equity, as there was no access to new borrowing—the group has already initiated its next strategic moves. 

WORLD HUB 

In particular, it is making new investments in its production facilities in Kilkis. The aim, as the head of Alumil noted, is for Kilkis to become a global hub "to which we will bring materials from the Balkan factories, but also from countries such as Turkey, Egypt, Dubai, Oman, India and Thailand, which produce for us phonons". 

STRENGTHENING INTERNATIONAL PRESENCE

At the same time, aluminum is strengthening its presence. 

• in the USA, with the creation of a second subsidiary in Texas, after the first one in New York in 2008, with Greek managers;
• in India, where it has had a subsidiary in Mumbai since 2016;
• in South-East Asia, where it is developing its activities through its new company in Bangkok, Thailand;
• in East Africa, through the subsidiary in Kenya since 2019.

LOANS AND borrowings

Mr. Mylonas also addressed one of the key issues that have been troubling the group since the outbreak of the crisis in our country, which is none other than the financing problems. He pointed out that the Net debt/ebitda ratio will drop from 9.7 in 2018 to 3 this year, with management's estimates for next year pointing to a drop to 2.4. As for the syndicated loan, the amount of €160m in 2018 will fall from €160m this year to €126m and next year to €92m. In addition to the repayment of instalments, the spin-off of the casting business is expected to contribute to the significant fall in 2025. 

ALUFOND

As Mr. Mylonas said, the process of spinning off the casting business by re-establishing Alufond and bringing in a strategic investor is underway, with Deloitte running the mandate. According to him, the foundry has already attracted the interest of large groups from Europe and America, and by March 2025 the new investor is expected to pay the money to acquire a stake in Alufond (estimated at 70%), which will be directed mainly towards further reducing debt but also towards the implementation of major projects. With the sale, Alumil will achieve the utilisation of the smelter, which will use 100% of the plant's production capacity, and will generate revenues from the casting of green aluminium, as well as the quantities needed for its own projects. It should be noted that the foundry has a production capacity of 65 000 tonnes, but to date production has not exceeded 30 000 tonnes. The foundry has been valued by Deloitte at €60 million, so Alumil is seeking to raise around €40 million from the sale of a majority stake since, with a limited investment, the buyer will be able to increase production to 100,000 metric tons, as the plant was designed from the outset for such production heights. 

JOINT VENTURE

Finally, Mr. Mylonas also referred to Alumil's ambitious project, which involves the launch of strategic cooperation through the creation of a joint venture with the investment fund "One World Impact Partners,"  aiming at the joint development of aluminium extrusion production units in various countries that will produce aluminium forms for various uses. These plants will operate both in support of the Alumil group and as independent companies with their own industrial customer base.