Aluminium Bahrain: Setting new records in the aluminium industry

March 14, 2016 in Manufacturing

Production in the aluminium industry continues to go from strength to strength in the Middle East at present.

For a long time now, one of the major aluminium smelters in the region has been Aluminium Bahrain B.S.C. (also known as Alba), a business consistently ranked as one of the largest and most modern aluminium smelters in the world. Known for its technological strength and innovative policies, Alba enforces strict environmental guidelines, maintains high track record for safety, and is widely regarded as one of the top ten performers on a global scale.

In January of 2016, Alba attained an all-time production record and to commemorate this achievement, held a ceremony at HRH Princess Sabeeka Oasis on Wednesday, January 6, 2016.

smeltingThe company achieved an all-time record when its metal production surged to 960,643 metric tonnes (mt) in 2015, up by 3.1 per cent YoY as compared to 931,427 mt in 2014.

The event was attended by Alba ‘s Chief Executive, Tim Murray, Chief Operations Officer, Isa Al Ansari, Chief Financial Officer, Ali Al Baqali, Chief Marketing Officer, Khalid Abdullatif, Chairman of Alb Alba marks all-time production record by holding a ceremony at HRH Princess Sabeeka Oasis on Wednesday, January 6, 2016.

Commenting on the Company’s production record, Alba ‘s Chief Executive, Tim Murray said:

Alba had another exceptional year in terms of operational and safety performance. In 2015, we were able to raise the bar despite very challenging market conditions. These results could not have been achieved without the hard work and dedication of our employees. I would like again to thank all the Alba stakeholders who contributed to this success and we look forward to go to the next level in 2016.”

The company was established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 960,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.

Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company’s shareholders are Bahrain Mumtalakat Holding Company (69.38 per cent), SABIC Industrial Investment Company (20.62 per cent) and the General Public (10 per cent).

News of the production record came just a few months after Alba had unveiled details of its approved Line 6 Expansion Project which will make it the world’s largest single site smelter.

“Aluminium Bahrain B.S.C. (Alba) announces approval for the Line 6 Expansion Project which would make the Company the largest single site smelter upon project completion. The Line 6 Expansion Project, expected to begin production in early 2019, will boost the per-annum production by 514,000 metric tonnes upon full ramp-up. This would bring Alba’s total production capacity to approximately 1,450,000 metric tonnes per year,” the company announced in a press release.

“One of the biggest industrial projects in the Kingdom of Bahrain, the Line 6 Expansion Project is expected to have a big impact on the economy and new job creation. In addition, at least 50 per cent of the new metal production is expected to be sold to existing and new Bahrain downstream customers.

“The Line 6 Expansion Project will allow Alba to continue its marketing strategy of maintaining its core presence in the GCC and, leverage its global sales offices to directly market the additional metal produced to meet the growing international demand for aluminium.

“Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “I express sincere thanks to His Majesty King Hamad bin Isa Al Khalifa, His Royal Highness The Prime Minister, Prince Khalifa bin Salman Al Khalifa and His Royal Highness, The Crown Prince, Deputy Supreme Commander and First Deputy Premier, Prince Salman bin Hamad Al-Khalifa for granting their approval and giving support for Alba’s Line 6 Expansion Project. I also express our profound gratitude to the Government of the Kingdom of Bahrain for its decision to approve the Line 6 Expansion Project.

“The Line 6 project will make Alba the largest single-site smelter in the world. In addition, it will strengthen Bahrain’s position as the hub for the downstream aluminium industry in the GCC,”” the statement continued.

iron-worksThe Company’s Board of Directors looked at various options from the Line 6 Bankable Feasibility Study (BFS) and ultimately finally opted for the largest expansion option of 514,000 metric tonnes which will significantly improve Alba’s overall cost position. By selecting the larger production capacity, the CAPEX associated with the Line 6 Expansion Project will be approximately US $ 3.5 billion versus the prior estimate of US $ 2.5 billion. Included in this CAPEX is the construction of a fifth power station with a capacity of 1,350 Mega Watts.  

“The Line 6 potline will utilize Dubal’s DX+ Technology which will bring state-of-the-art technology to optimise cost performance and reduce energy consumption,” the release continued.

“In addition, the Board of Directors has officially appointed J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) as Alba’s Financial Advisors for Line 6 Expansion Project.  

The construction of Line 6 is estimated to start this year, upon the completion of final engineering designs, selection of project EPCM for Line 6 and EPC for the Power Station 5.

Alba’s Chief Executive Officer, Tim Murray added: “We are very excited to get the go ahead for the Line 6 Expansion Project and look forward to the many opportunities it will present for both Alba and Bahrain.”

“The Line 6 Expansion Project is the culmination of the 40 years of history that Bahrain has in the aluminium industry as it will allow Alba to optimise both – its cost structure and marketing strategy. The Line 6 Expansion Project will be an important milestone for Alba and will sustain the aluminium industry in Bahrain for many generations to come,” the company concluded.