Aluminium Bahrain, the world's largest single-site smelter, is known for its commitment to innovation, sustainability, and operational excellence. Recent developments highlight Alba's strategic partnerships and product advancements, particularly in sustainable aluminium production.
STRATEGIC PARTNERSHIP WITH DAIKI ALUMINIUM
Alba has partnered with Daiki Aluminium, Japan's leading aluminium manufacturer, to establish a sustainable aluminium dross processing plant in Bahrain. This collaboration was formalised with a memorandum of understanding (MoU) signed by key executives from both companies, including Alba’s CEO Ali Al Baqali and Daiki Aluminium's Chairman Yamamoto Takaaki.
The dross processing facility is set to employ advanced technologies aimed at recovering valuable aluminium metal from dross, which is typically regarded as waste. By doing so, this initiative not only enhances resource efficiency but also aligns with Bahrain’s environmental goals and Alba’s Environmental, Social, and Governance (ESG) Roadmap.
CIRCULAR ECONOMY PRINCIPLES
Central to this partnership is a shared commitment to the principles of a circular economy. The facility is expected to significantly reduce waste while recovering high-value aluminium, thus contributing to a sustainable production model. Al Baqali emphasised that this strategic alliance marks a transformative moment in Alba's sustainability journey, underscoring the importance of creating lasting value for stakeholders while advancing a circular economy.
ECONOMIC PARTNERSHIP BETWEEN BAHRAIN AND JAPAN
This collaboration also reinforces the growing economic partnership between Bahrain and Japan. By combining Alba's industry-leading expertise with Daiki Aluminium’s technological prowess, both companies aim to set a benchmark in sustainable aluminium production. The mutual benefits of this partnership extend beyond operational efficiency, fostering innovation that aligns with global sustainability trends.
LAUNCH OF ETERNAL: LOW-CARBON ALUMINIUM
In another significant milestone, Alba recently launched its EternAl product line, introducing low-carbon aluminium with two variants: EternAl-30 and EternAl-15. These products contain 30 per cent and 15 per cent recycled content, respectively, substantially reducing their carbon footprint. The launch of EternAl positions Alba at the forefront of the global shift towards sustainable aluminium production.
INDEPENDENT VERIFICATION OF SUSTAINABILITY
EternAl has received independent verification from DNV, a globally recognised leader in verification assurance. This endorsement not only solidifies the product's sustainability credentials but also assures customers of its reduced emissions throughout the aluminium value chain.
Al Baqali expressed enthusiasm about the partnership with Capral Aluminium, Australasia’s only ASI Certified extruder, which became the first customer for EternAl. This collaboration enables Australian manufacturers to access lower-carbon aluminium, empowering them to lead in environmental responsibility.
EMPOWERING CUSTOMERS AND INDUSTRIES
The introduction of EternAl represents a paradigm shift for various sectors including marine, defence, transport, and construction. By providing access to high-quality, recycled content products, Alba is not only revolutionising the aluminium industry but also enabling its customers to embrace a circular economy.
Luke Hawkins, General Manager of Capral Aluminium, highlighted the importance of Alba's proactive approach, ensuring materials are produced responsibly across the entire aluminium value chain. This partnership exemplifies how collaboration can drive positive change and foster sustainable practices in manufacturing.
FINANCIAL PERFORMANCE AND MARKET POSITION
Alba's financial performance in the second quarter of 2024 reflects its robust operational strategies and market resilience. The company reported a profit of BD68.5 million (approximately US$182.2 million), a staggering increase of 129.2 per cent year-over-year. This strong performance can be attributed to rising LME prices and efficient operational management.
For the first half of 2024, Alba reported a profit of BD93 million (US$247.3 million), demonstrating a 20.2 per cent increase compared to the same period in 2023. The company’s total comprehensive income also saw significant growth, underscoring its successful navigation of a challenging market landscape.
OPERATIONAL EXCELLENCE
Alba’s commitment to operational excellence is evident in its production and sales metrics. In Q2 2024, sales volume reached 397,538 metric tonnes, with value-added sales accounting for 73 per cent of total shipments. The company achieved savings of US$35 million against its improvement program target, further enhancing its operational efficiency.
Moreover, Alba recently signed an agreement with SAP to upgrade its enterprise resource planning solution, demonstrating a commitment to leveraging technology for improved operational outcomes.
INDUSTRY CHALLENGES AND MARKET OUTLOOK
Despite its impressive performance, the aluminium industry faces several economic challenges, including inflation and geopolitical tensions. These factors have contributed to a passive demand environment globally. In particular, the Chinese market has shown modest consumption growth, while the Middle East region has experienced a slight uptick supported by increased demand in the UAE.
FUTURE PROSPECTS
Looking ahead, the outlook for the aluminium market remains uncertain. While global production is rising, particularly in China and the Middle East, demand recovery is sluggish. However, Alba’s strategic initiatives, such as the launch of EternAl and its partnership with Daiki Aluminium, position the company favorably to capitalise on future market opportunities.
Alba is focused on achieving its sustainability targets, including a commitment to net-zero emissions by 2060. The company has embedded sustainability principles into its operations, minimising environmental impact from raw material sourcing to product delivery.
Link: https://www.albasmelter.com/en/article/the-future-is-recycled-alba-eternal-for-global-markets