DUSHANBE, December 19, Asia-Plus — Press release issued by Tajik Aluminum Company (TALCO, formerly Tajik Aluminum Plant or TadAZ) says that financial indices of the company for this year are the best for the period of Tajikistan’s independence.
Business strategy chosen by the company has allowed it considerably improving its financial indices, press release said.
The company top managers say the mentioned successes have been reached, first of all, due to introduction of a system of tolling operations
According to press release, tolling system, including processing of customer’s (own) [take-back] feedstock with further export of product of processing under customs control, is the most widespread type of operations in the world metallurgical business. “It has replaced the old system of barter operations and it has become the only way to overcome the crisis,” press release said.
Before 2005, as result of destructive business-model imposed by the former administration of the Tajik aluminum plant all production and economic indices had becoming worse year out, and TadAZ had finally found itself under control of external raiders.
The tolling system has allowed partner companies – CDH Investment Corporation and TALCO Management Limited, attracting ready financing as well as created conditions for introducing the state-of-the-art technologies and equipment in the aluminum production, providing regular supply of raw material.
Over the last three years, the company has invested more than 75 million US dollars in modernization of the plant.
Due to the tolling system, TALCO has managed to keep idle workshops running at full capacity, repay debts and launch development and social programs.
To provide more raw-material independence, the TALCO administration, in particular, conducted successful negotiations with governments and companies of Italy, Australia, Brazil, the United States, Norway, Azerbaijan, Kazakhstan, Turkmenistan Uzbekistan and some other countries.
Under the reached agreements TALCO partners from these countries will provide assistance with supply of alumina, oil coke and electrical power to Tajikistan in exchange for primary aluminum and other TALCO’s products.
Transformation of TALCO into energy-metallurgical company is one of successes of the new business-strategy, according to press release.
Sizable investments in rehabilitation of the Yovon heat station (more than $15 million), inclusion of the station into the company’s structure, as well as launch of a new workshop for processing scrap iron allow diversifying production and making additional contribution to national economy.
Besides, supervisory board will be set up at the company on an initiative of the company administration. The supervisory board that will consist of representatives from the public associations, government bodies and the company administration will have powers to participate in working out strategic plan of development of TALCO, enhancing corporate management and providing transparency of the management’s activity.
The rated capacity of the Tajik aluminum plant is 520,000 tons per year.
The expected crude aluminum output for 2007 is 420,800 tons, which 60,700 tons or 16.8 percent more than in 2004.
In January-September 2007, TALCO has transferred to the national budget 133.7 million somonis. In 2007, the anticipated contribution of TALCO to the national budget will be i180 million somonis, which is 67 million somonis more than in 2004.
Over the same nine-month period, an external trade turnover of TALCO has amounted to 1.4735 billion US dollars, which was 115 percent of the January-September 2006 level or190 million dollars more.
In 2006, the company’s external trade turnover amounted to 1.7725 billion US dollars. The company accounts for some 75 percent of the country’s currency receipts.
