Following the commissioning of Potline 5, Aluminium Bahrain is producing at full throttle to supply greater quantities of products to local, regional and international markets.

The expansion raised production capacity to 830,000 tonnes per year (tpy) from 525,000 tonnes. The latest expansion did not come a day too early, as world demand is hotting up and even the planned and ongoing projects in the region will be kept busy meeting only a part of the needs of a hungry world market.
For now, Alba is happy its additional production is bringing in revenues while making it possible to fulfil its commitments to its regular customers and new markets.
“We are now working at full capacity,” said Alba’s acing chief executive, Ahmed Saleh Al Noaimi. “We have been satisfying our customers, while earlier we had difficulties in supplying the quantities they required. We have also increased quantities to local parties.”
Bahrain’s downstream industries received 40 per cent of the 750,000 tonnes produced during 2005, against 45 per cent of the total production of 520,000 tpy in 2004. While the percentage granted to them was lower, they got more in actual tonnage. Other Gulf states received 15,000 tonnes. Most of the remainder went to the Far East and Southeast Asia.
In 2005, standard and alloy ingots accounted for 200,000 tonnes of the production, billets accounted for 280,000 tonnes, rolling slab 140,000 tonnes and liquid metal the remainder of the lot.
One of the developments following Line 5 was Alba’s decision to deal directly with its customers, doing away with middlemen traders. To facilitate the distribution of its products, Alba is relying on its agents in various parts of the world.
The direct approach has its obvious advantages. “You understand fully customers’ problems as you interact with them. You get to know how your product is valued and how to set the final premium on each product,” commented Al Noaimi. “There are also economies from direct selling.”
Even as Line 5 was under construction, there was talk of having a sixth line.  “It’s no secret we have Line 6 on the agenda,” said Al Noaimi.  Our pre-feasibility studies are almost completed. We have to look into all angles and resources. The award of gas is the main consideration.”  To have the project going, a gas deal will likely be clinched between the Bahraini and Qatari governments. With Line 5 having been commissioned only a few months ago, Alba can wait for some time before the board decides on the next expansion.
At the end of 2005, the issue of Alcoa taking a part of the Bahraini government’s share of Alba was not in the reckoning. Al Noaimi said it appeared to be shelved, but added: “There’s nothing that’s telling us it will not be looked into again at some time in the future. It is a matter for the shareholders.” The Bahraini government owns 77 per cent of the company, the Saudi giant Sabic 20 per cent and Breton Investments 3 per cent.  Alcoa, two years ago was expected to take a 26 per cent stake in the smelter, reducing by that figure the Bahraini government’s ownership but after an MoU was signed by the two parties, they could not decide on a price.
Alba has also signalled it is interested in buying a stake in a foreign smelter or an alumina refinery. In remarks earlier in 2005, Al Noaimi commented that Alba had been looking at investment possibilities in India, Africa and Southeast Asia and that the Indian market seemed promising. It was part of a wider strategy to take on a greater role on the world stage. The official said recently that a ‘study’ was in progress and any decision would be made on the basis of its outcome. “We are trying to look around and see what options are available.”
At an international conference in Bahrain in December, Al Noaimi said aluminium smelters in the region were ideally positioned both geographically and industrially to benefit from growing international demand for primary aluminium.
With global demand for primary aluminium far outstripping global supply, production from existing and expansion projects underway would still be inadequate.
He cited UN statistics that put per capita consumption of aluminium in industrialised countries at an average of 10 times greater than the per capita consumption in new and developing economies.