Gulf Aluminium Rolling Mill (Garmco) is preparing for thepost-recession era by increasing capability at its plants to increase volumesof its products.

The company has also initiated an expansion at its plant toreduce dependence on Alba's metal supplies.

One of the projects the company has initiated is setting upa third tension-leveling line at its rolling mill. The project will result inan increase of 60,000 tonnes in terms of tension leveling - from 160,000 tonnesto 220,000 tonnes.

'This line was badly needed,' said Garmco chief executive DrAdel Hamad. 'It will translate into circles, sheets and coils and offer betterquality. This will enable us to achieve our five-year strategy of a five percent yearly increase in the production of these items.'

The new line will enable roughly 8,000 tonnes to be added tothe production capacity of circles, sheets and coils. The rolling mill's annualcapacity is currently 160,000 tonnes.

Garmco is also increasing its melting capacity from 75,000tonnes to 175,000 tonnes to reduce dependence on Alba supplies. The additionalcapacity will compensate for the closing down from the New Year of thesmelter's Casting Station 1.

The third project underway at Garmco is the expansion of thefoil mill from its current annual capacity of 20,000 tonnes to 28,000 tonnes inthe first stage and to 35,000 tonnes at the end of the second stage.

Contractors for all three projects are being appointed andcompletion will come around the end of 2011. The total cost is estimated at $32million with $20 million accounting for the increase in melting capacity.

The company makes circles, sheets and coils in the series of1,000, 3,000, 4,000, 5,000 and 8,000. The 5,000 series fetches the highestprice as it has applications in the fields of electronics and value addedproducts.

Exports drop
Garmco exports dropped from 152,000 tonnes in 2008 to147,000 tonnes in 2009, a development Dr Hamad said was 'an excellentperformance when one considers the global economic slowdown.' In the US,exports from Garmco Bahrain were reduced substantially because of lowermanufacturing activity, a lack of facilities, unemployment and closure ofbusinesses. The US market, which used to import 1,500 tonnes monthly, took injust 300 tonnes per month as the year progressed.

Dr Hamad: good performance in difficult times

The company, however, made up in other places. Exportspicked up in the Middle East, Australia and India.

Prices deteriorated in 2009 for Garmco's finished productsbut in the last quarter of the year, the margins improved. The company plans tointroduce value-added products including one which will be used in thelithographic sector. Exports of 155,000 tonnes have been targeted for 2010.

Garmco is exploring new markets in South America and Canadaand seeks expansion in African markets other than North Africa which it isalready supplying. It is also discussing with parties to open service centresin Japan, Canada, Morocco and Brazil. A service centre was opened in 2009 inEgypt, joining several others in Australia, Singapore, Thailand, China andKorea where material is cut and slit according to the requirements ofcustomers. The company plans to have such centres in Japan, Canada, Morocco andBrazil. The company has two manufacturing subsidiaries in the US. 

One of the highlights of 2009 was upgrading the hotline at acost of $2 million, changing of motors from DC to AC and upgradation of thesoftware and hardware.

Meanwhile, the company postponed the financing procedure forits Oman subsidiary Garmco Oman due to the recession but expects to go to thebanks by the end of the first quarter. The investment of the Oman rolling mill was initially set at $300million but this is likely to be reduced. Capacity of the rolling mill will be160,000 tonnes. An aluminium foil mill will also be built near the mill.

Human resources
The Bahrainisation level has advanced from 85 per cent n2008 to 87 per cent in 2009. At the plant level, Bahrainisation is 100 per centwhile 76 per cent of management staff is Bahraini. The company has a permanent trainingcentre that conducts short courses in various management fields includingsupervision, computers, manufacturing and sales.

In 2009 the company won three awards - for quality, businessand Bahrainisation - and was declared the best national company in the GCCregion. Among its recent achievements was gaining the ISO 18,000 mark forsafety.