MoU on Alcoa stake signed
Bahrain and Alcoa, the world’s leading primary aluminium producer, signed an MoU paving the way for the US-based company to buy a stake of up to 26 per cent in Alba.
Final agreements will be completed by mid-2004 on the issue concerning Alcoa’s equity stake and the matter of Alcoa’s long-term alumina supply arrangements for the smelter.
Alcoa could pay up to $600 million for the deal, a company source said.
Bahrain’s government owns 77 per cent of Alba. The Saudi Public Investment Fund holds a 20 per cent stake with Breton Investments of Germany holding the remaining 3 per cent.
Alcoa World Alumina and Chemicals, an alliance between Alcoa Inc and Alumina Ltd, is Alba’s primary supplier of alumina.
Alba is undergoing a $1.7 billion expansion of its smelter including constructing a fifth production line. The smelter was commissioned in 1971.
Its expansion will increase Alba’s annual production to 813,000 tonnes, making it the Middle East’s largest smelter.
Garmco expanding
Bahrain’s Garmco is investing $10 million on an expansion to meet the increasing worldwide demand for its products.
The aluminium rolling mill will increase its annual capacity from 125,000 tonnes to 145,000 tonnes through the expansion. The improvements do not entail changes in the staff level.
EWDPs coming up in Kuwait
Construction is underway for Kuwait Oil Company’s project for two effluent water disposal plants (EWDPs) in the southeast of Kuwait.
The plants are being constructed in Magwa and Burgan with a total treatment capacity of 1,048 metric barrels of water per day (MBWPD).
Effluent water will be collected from 14 gathering centres. Treated water will be distributed to 12 wells through well headers. Four gathering centres are to be included in the Magwa facilities while 10 similar centres come within the Burgan facilities
The consultant is Flour Daniel. The main contractor is Daelim Engineers & Construction Company.
Plans for an aircraft assembly plant
A Russian-UK initiative plans to set up a flight training school as a forerunner to an aircraft assembly plant in the Gulf, a Dubai news report says.
Sukoi, the Russian Design Company, and Arena International of the UK are in touch with airlines to kick-start the flight academy.
Arena International is a 30-year-old company with a diverse portfolio and wide experience in the aviation industry. The two have signed a worldwide franchise agreement for promoting a new breed of aircraft including the Su-42 turboprop trainer for advanced pilot training and the Sukhoi supersonic executive jet, which they believe they will be able to assemble in the Gulf, preferably in Dubai, some time after the flight academy has been established.
Indonesian exhibition held
Indonesian Vice President Hamzah Haz came down to Dubai to attend the Indonesia Solo Exhibition (ISE). Organised by the Indonesian Ministry of Industry and Trade in association with Jakarta's National Agency for Export Development (Nafed), it featured 400 companies showcasing products related to farming, fisheries, forestry, mining and engineering. Also represented was the services sector, which had firms presenting their capabilities in tourism, banking, investment and transportation. Diah Maulida, chairperson, Nafed, described the event as Indonesia's first foray into the region.
'Indonesian exports to the UAE rose steadily from $649.6 million in 1999 to $747.8 million in 2000 and on to $756.9 million in 2001 but there was a slight decline to $719.552 million in 2002,' said Maulida. 'These indicators prompted us to host a show of this magnitude to increase our share of this ever burgeoning market and to tap its re-export trade.'
Arab Potash in export deal
The Arab Potash Company has landed a deal worth $65 million to export 650,000 tonnes of potash to India, the Jordanian-based company said.
Company director Wanas Hindawi said the contract was a major boost as Arab Potash normally exports only 500,000 tonnes a year to India.
Arab Potash is a major revenue earner for Jordan.
Saudi dairies plan to merge
Several dairies in Saudi Arabia’s eastern province, stung by competition from the bigger operators, have decided to combine and form a single entity to capture a bigger share of the market than they would have done individually. According to a Saudi press report, companies including Al Rayan, Al Sharqiyah and Al Reef are moving towards signing an agreement soon.
Ore worth $293 million mined
Licensed mining companies extracted in Saudi Arabia in 2002 more than 180 million tonnes of ore worth SR11 billion ($293 million), Saudi media quoted the Saudi government as saying. The operations yielded an overall net profit of SR2 billion, a Ministry of Petroleum and Minerals Resources statement said, according to the reports.
Production from the ores amounted to 23 million tonnes of cement, 552,000 tonnes of gypsum, 4.1 million sq m of ceramic, 12,000 tonnes of sanitary fittings, 1.3 million tonnes of salt, 4,500 kg of gold and 140 million tonnes of decorative stones and other assorted building material.
Jebel Ali growth projected this year
The Jebel Ali Free Zone Authority (Jafza) projects an overall growth of between 15 and 20 per cent in the current fiscal year, according to a senior Jafza official. Abdullah Lootah, senior sales manager at Jafza, said the estimate included not only the increase in the number of companies but also revenue enhancements and profile build-up.
Currently there are 2,550 operating in the free zone. In terms of business activities, 76 per cent are involved in trading, 20 per cent in manufacturing and four per cent in services. Under an expansion plan, 63 new units are scheduled to be ready by the end of this year.
Hadeed cleared of dumping charge
The Indian Ministry of Trade has dismissed a dumping charge against Sabic affiliate Saudi Iron and Steel Company (Hadeed). The Indian Steel Federation had made the allegation against Hadeed.
The ministry’s anti-dumping department ruled that Hadeed’s products were not harming the local Indian industry and therefore did not attract any action under the anti-dumping regulations.
