The move will reinvigorate Bahrain’s iconic aluminium downstream company, enabling it to focus on existing high-margin markets and finding new and promising ones
Bahrain-based aluminium rolling mill Garmco, which has seen exports flourishing in several key export markets including the US and Southeast Asia, has completed a major restructuring of its international operations.
Garmco is one of the largest downstream aluminium facilities in the Middle East. The restructuring is in line with the company’s three-year strategy, which involves closing unprofitable subsidiaries and non-operating companies, and identifying additional opportunities for growth in high-margin markets where Garmco has established a strong presence, in particular Southeast Asia, the US and Australia, said a statement from the company.
The restructuring has resulted in the closing of unprofitable subsidiaries in the saturated markets of China and Korea, and non-operating companies in Hungary and Cyprus, which do not add value to the company’s core activities, it added.
Garmco US has performed strongly, with sales having increased by over 20 per cent during the past year. This is due to concerted sales and marketing activities, and the positive momentum of the US economy, it said.
The company, with the support of a strong management team and successful business model, has established a dominant market share in Australia, said the statement.
The subsidiary recently signed up a major new customer, LicenSys, which is the leading manufacturer of high-quality, difficult-to-clone, embossed retro-reflective aluminium vehicle licence plates in Australasia and the Pacific region, the company said.
Additionally, Garmco has developed into a leading supplier of aluminium products in Singapore. This subsidiary serves the home markets of Singapore and Malaysia, as well as neighbouring countries such as Brunei, Taiwan and Indonesia.
The subsidiary has also developed fast-growing operations in Thailand and Suzhou, China, while a long-standing relationship with Mitsui & Company provides the subsidiary with valuable insight into potential Japanese customers in the Far East.
In addition, Garmco Singapore recently established a new subsidiary in Vietnam, which is one of the fastest growing economies in Southeast Asia, especially in the field of electronics.
As part of the restructuring, both chairman Mahmood Al Soufi and the chief executive officer Jean-Baptiste Lucas now sit on the boards of directors of the subsidiaries in Australia, Singapore and the US.
Al Soufi remarked: “These proactive developments illustrate the successful implementation of the group’s strategy to consolidate and expand its international operations.
“The closure of unprofitable subsidiaries and non-operating companies will enable Garmco to focus on existing high-margin markets where it has established a strong operating presence and loyal client base, and to identify attractive new markets where there is a growing demand for the highest-quality rolled aluminium.”