Metals & Metal Products

Aluminium to be GIF centrepiece

The Bahrain Aluminium Extrusion Company plant

The crème-de-la crème of the northern Gulf’s aluminium sector will take the floor at GIF 2012, which is being held at a buoyant time for the industry.

According to the International Aluminium Institute, GCC aluminium output in January to September 2011 was 2.55 million tonnes, against 1.95 million tonnes in the same period of 2010.

The region’s influence over the global aluminium industry is set to grow. Annual GCC aluminium output is forecast to be 4 million tonnes by 2014. Media reports suggest that by 2020 almost one-fifth of the world’s aluminium will be manufactured in the Gulf as regional output triples on the back of a $20-billion spending programme on new smelters and expansions of existing capacities.

This includes the $10.5-billion Maaden-Alcoa joint venture in Ras Az Khair, Saudi Arabia, scheduled for first commercial production in 2013. According to Alcoa, the world’s leading producer of primary and fabricated aluminium, the integrated complex will be developed in phases and include a 740,000 tonnes per year (tpy) smelter and a 380,000 tpy rolling mill as well as a bauxite mine and alumina refinery.

Currently, 80 per cent of GCC smelter output is exported, playing its part in meeting current global aluminium demand of 40 million tpy. This demand will, forecasts suggest, balloon to 74 million tpy by 2020, of which China is predicted to account for 40 million tpy.

Against this background, Aluminium Bahrain (Alba), which is for the third successive year the Strategic Aluminium Partner at Gulf Industry Fair, is also poised to strengthen its position.

The company recently reported a net income of $214 million for the third quarter of this year on the back of higher production levels, sales and profits, and admits it is confident about the future.

“Looking ahead, we remain confident that the milestones achieved throughout the last three quarters of 2011 will lay the foundations for a positive outlook for the remainder of 2011. Our focus on Operational Excellence initiatives - Six Sigma & AlbaSafeWay launched in the third quarter of 2011 - will provide us with a good platform to embark on 2012,” says chief executive Laurent Schmitt. 

Alba says its production increased by five per cent and sales by 8.3 per cent during the third quarter period. Sales volume, meanwhile, reached $582 million, compared to $447 million in the third quarter of 2010, he says.

Alba’s strategic role at GIF reflects both its status as one of the world’s largest aluminium smelters as well as its importance to the Bahraini economy. Approximately 430,000 tpy of its output is consumed by a vibrant downstream aluminium sector in the kingdom.

Alba chairman Mahmood Hashim Al Kooheji underlines the importance of promoting the company and its strategic vision in providing competitive value-added products on a global basis.

“We are delighted to support the Gulf Industry exhibition and showcase our production capabilities and at the same time support Bahrain as a location for international investors. Alba has recently opened offices in Zurich and is set to expand further into the Far East,” he notes.

Alba’s top-level support for the Fair is also a clear endorsement of the show’s growing gravitas, says HCE managing director Jubran Abdulrahman.

“Aluminium is a pillar of economic growth in northern Gulf countries as they diversify their economies. For GIF to meet its core objectives, it is vital that the region’s world-class smelters and downstream service companies showcase their collective capabilities to a target audience of visitors, which will send out a very strong message about the region’s inherent strengths.”

To complement the exhibition, the Gulf Aluminium Council (GAC) general secretary Mahmood Daylami will address the Gulf Industry Forum, to be held alongside the exhibition on February 8.

Downstream sector
The downstream aluminium sector is buzzing as regional demand for derivative products grows and primary aluminium producers press on with expansion plans.

Gulf Industry Fair’s Aluminium pavilion promises to showcase the products, services and capabilities of several downstream specialists, who include rolling mills, extrusion manufacturers, maintenance specialists and cable makers.

Gulf Aluminium Rolling Mill Company (Garmco), which has been sourcing its primary aluminium raw material from Alba since 1986, says it supplies standard and non-standard cut-to-length sheet, coil and circles to both small fabricators as well as major manufacturers, civic and private projects.

Bahrain Aluminium Extrusion Company (Balexco), meanwhile, says it produces some 25,000 tpy of high quality extrusions and systems, including extruded aluminium sections, system profile sections, thermal break sections and curtain wall profiles. Its plant also includes an in-house powder coating and anodising line, meeting demand for different extrusion colours.

To meet anticipated future demand, Balexco has been undergoing phased facility expansion.  Phase IV expansion saw the production capacity of the Qualanod-compliant anodising plant rise from 11,000 amps to 60,000 amps, while Phase V expansion is adding 9,600 tpy of production capacity to the plant, enabling the plant to extrude eight inch billets.

International Technical Supplies and Services (ITSS), a leading refractory solution provider and material supplier whose clients include Alba, Balexco and Garmco as well as Qatalum in Qatar, is also looking to use GIF as a launchpad to raise awareness of its capabilities within the primary and downstream aluminium industries.

Ameeri Industries, meanwhile, will soon start construction on a new state-of-the-art manufacturing facility in Bahrain Industrial Investment Park scheduled to start up at the end of 2013. The company, which manufactures a range of industrial products such as electrical panel boards for a wide range of industries, including aluminium, plans to use GIF 2012 to demonstrate its products to new and existing customers.