Aluminium Bahrain (Alba) is considered a splendid example of diversification away from oil resources, a channel to spur further economic development through greater exports and a facilitator for investments in the aluminium industry within and outside the country.

These facets were uppermost on the minds of Bahraini government dignitaries and guests who were present to see Bahrain’s Prime Minister Shaikh Khalifa bin Salman Al Khalifa officially opening Alba’s $1.7-billion Alcan-Pechiney AP-30 Potline 5.
The expansion raises production capacity to 840,000 tonnes per year (tpy) by adding on about 320,000 tpy, and paves the way to meeting some of the growing demand for the metal in the world’s markets. The 1.2-km-long potline is the world’s longest with 336 cells. It achieved a world record for the quickest and safest start-up phase of just 77 days without a lost-time accident.
Shaikh Khalifa noted that the new potline established Alba’s position as the largest modern smelter in the world. “It will increase the volume of Bahrain’s national exports and foreign trade and improve the country’s trade structure,” he said in a statement shortly after unveiling a monument at the expansion site, marking the formal commissioning of Potline 5.
“Line 5 will equip Alba to meet the increasing demand of aluminium in the world market, which grows at the rate of four per cent annually. The expansion has come in conformity with the government’s plans to diversify the economy by converting energy resources to value-added products,” the Prime Minister remarked.
“We want to attract more foreign investment in aluminium and other related industries. The GCC countries should also make a joint effort to further build up the aluminium sector. Our government will provide suitable conditions for the growth of the industrial sector.”
The expansion eased the employment situation for Bahrainis, creating around 500 permanent jobs. Several thousand workers were on duty during the construction phase.
The project involved two main elements, namely the creation of a major power station at a cost of $450 million and the smelter expansion, costing $1billion. The new facilities included a carbon plant and a casthouse.
In April 2002, Alba appointed Mott MacDonald as the engineering and construction manager for the power station project and in July 2002 the engineering, procurement, construction and management contract was awarded to Bechtel.
The increased investment into the national economy due to the expansion brought in tremendous opportunities that filtered down to the smallest contractors and suppliers.
By working on a project of such a large scale and being exposed to work practices of international standards, the local construction workforce was able to develop its skills and technical know-how through Alba’s and Bechtel’s intensive safety measures and training schemes.
A significant feature of the project was the “Training for Bahrain” scheme under which young and unemployed Bahrainis were trained in various facets of the construction industry.
Alba partnered with the Ministry of Labour and Social Affairs, Bechtel and local contractors working on the project. Trainees were taught a host of skills and some 800 who completed the programme had the good fortune of being absorbed by the contracting companies working on the expansion. The figure did not include the 500 Bahrainis who found permanent employment at the smelter. “Training for Bahrain” turned out to be so inspiring that some of the trainees went on to open their own businesses in the construction industry.
With Line 5 commissioned, Alba is a $5 billion company, the acting chief executive Ahmed Saleh Al Noaimi pointed out. The return on equity for shareholders has reached 30 per cent to 40 per cent, he added.
Line 6 has been on the agenda for some time, but it will be implemented only after a thorough feasibility study. Bahrain’s government is negotiating with Qatar for importing the required gas to meet the energy demand.