19 December 2007
JOINT PROJECT BETWEEN IBS and ROMANIAN ALRO GROUP of COMPANIES
Phase 1 of the Joint Project between the Russian IBS and Romanian ALRO Group of Companies comes to completion.
IBS company, the Russian IT and consulting market leader, and ALRO, the largest aluminum producer in Central and Eastern Europe (excluding the RF), announce the commissioning of the unified corporate information system based on SAP ERP platform. Commercial operation started on September 1, 2007.
Currently, the Romanian ALRO Group of Companies comprises two entities: a primary and processed aluminum production plant (S.C. ALRO S.A.) and an alumina production plant (S.C. ALUM S.A.TULCEA).
In July of 2007, VIMETCO (www.vimetco.com), the owner of ALRO Group of Companies, undertook a successful IPO, having placed its shares at the London Stock Exchange. That is why from the outset of the project the stated objective had been raising the ALRO companies to a contemporary competitive quality level of corporate management.
The project that started on November 1, 2006, was called upon to resolve the issues of enhancing the efficiency of management through standardization of functions common to all plants, centralization of non-productive functions at the head office, and possibility to exercise control over the enterprise business processes via an integrated information system in real time.
Based on the results of the tender the project was awarded to an international consortium of companies headed by IBS company. Participants in the tender also included the Romanian systems integrators and the leading Western consulting companies. An important criterion for the selection of the system introduction partner was previous successful experience in the area of creating integrated automation systems in metallurgy, availability of a professional team of consultants, guarantees of staying within the schedule and budget of the project.
The unified corporate information system of ALRO, which includes the transaction and analytical systems, is built on the basis of Enterprise Resource Planning (SAP ERP) product by SAP AG company. During phase 1 of the project, finance management was implemented (including accounting to local standards, and to IFRS), as well as management accounting, investments management, management of materials flows, purchases, sales, and production planning and control. Furthermore, a system of budgeting and analytical reporting was set up. The system of strategic planning based on SAP Business Intelligence platform will become fully operational before the end of 2007.
Depending on the results of Phase 1, during Phase 2, which is scheduled for 2008, it is planned to develop the functions already introduced, and to install the ТОRО control system (based on SAP PM). Integration is planned between the existing Manufacturing Execution Systems (MES) and SAP ERP system. The system will be localized for operation in Romania.
Gheorghe Dobra, Managing Director of ALRO: “We believe that the introduction of the modern information system for management will allow us to construct more efficient relations inside the holding, improve the profitability of operations and management quality. Already now the automation of activities and regulation of procedures helped us significantly reduce the time for preparation of reports, analyses and decision-making. Before the project was started we were receiving reports on economic operations in the preceding month only in the twentieths of the following month. Now the time for period closure has reduced to 6 days and we can respond more rapidly to changes in the situation”.
About Companies
ALRO Company is a public joint-stock company, whose shares are traded at the Bucharest Stock Exchange. The Company produces about 260 thousand tons of primary aluminum and about 60 thousand tons of processed aluminum a year, thus making it the largest producer of aluminum in the Central and Eastern Europe (excluding Russia).
ALRO production processes and products are certified for compliance with international standards ISO 9001, ISO 14001 and ISO 18001 (OHSAS 18001).
In the last 40 years ALRO has been contributing significantly to support the development of Romanian economy and foreign trade, giving employment to 4500 people. Taking into account the related industries’ personnel and family members, ALRO creates conditions for supporting the life of more than 20 thousand people.
ALRO products are known in 25 countries of the world. www.alro.ro
Vimetco NV is an international industrial and investment group that operates in the aluminum industry with a corporate investment center in the Netherlands, and management and service center in Switzerland. The group is represented in several countries, including the Netherlands, Switzerland, China, Guinea and Romania. The group’s enterprises employ about 10400 people (as of 31.12.2006).
The bulk of the Group’s products are sold at the international market, including the London Metal Exchange (LME), and the Shanghai Metal Market (SMM).
In July of 2007, Vimetco company in the course of successful IPO placed its shares (GDR) at the London Stock Exchange. As a result of IPO the company was valued at about $2 billion.
IBS Company is the leader of the Russian IT and consulting market. It is part of the IBS Group of Companies. For information about the company and its practices in the field of corporate control systems see the web-site in the Internet at: www.ibs.ru.
IBS is the first Russian company that received the highest partnership status of the Local Alliance Partner of SAP AG, and is also the first SAP partner in the field of solutions for business intelligence. In 2005 IBS was recognized as the best Local Service Partner of SAP AG in Russia and CIS countries. IDC, an international intelligence company, recognized the IBS team of consultants for introduction of SAP as one of the best in Russia.
For further information please, contact:
Dmitry Ivanov
Director
Investor Relations IBS Group
tel: +7 (495) 967 8000
fax: +7 (495) 967 8099
e-mail: dvivanov@ibs.ru
Gamid Kostoev
Director
Corporate Communications IBS Group
tel: +7 (495) 967 8000
fax: +7 (495) 967 8099
e-mail: gkostoev@ibs.ru