Aluminium extrusion profiles are becoming more sophisticated by the day, and Gulf companies involved in manufacturing them are vigorously seeking to introduce newer technologies to catch up with trends in the structural and architectural domains where these profiles have their applications. The situation is clearly one of adapt or perish, so it comes as no surprise that one of the region's prominent extruders, Bahrain Aluminium Extrusion Company, is embarking on yet another expansion.

This time it is an anodising plant with what chief of engineering AD Nambiar calls state-of-the-art equipment. "For the new plant, there is no technical collaborator, but we have a party that will supply the equipment, install it and commission it," said the official. Machinery is coming from Italy and work is expected to begin shortly with the plant getting ready for production within a year.

Balexco will be investing BD2.3 million ($6.10 million) for the new plant, which will have a capacity of 6,000 tonnes per annum. The company already has an anodising facility in operation, one that now takes care of 4,000 tonnes per year, but it is an old unit and the system obviously needs an updated version. Anodising the profiles is important if they are to be protected from corrosion and scratches. The process also makes the profiles more aesthetically acceptable, and newer technologies are ensuring that the anodising procedure is more efficient and effective.

Balexco, which is owned 52.2 per cent by Gulf Finance House, commenced production in 1977, and over the years has proved to be one of the shining lights of Bahrain's non-oil sector. The first expansion was in 1992 when a second extrusion line and powder-coating unit was introduced. A re-melt plant was added in 1995 and the following year, press line number 3 was installed.

The manufacturing facilities include a 12,000 tonnes per year (tpy) recycling and casting plant from Hertwich Engineering, Austria; three extrusion presses of 2000 tonnes (Schloeman), 1,600 tonnes (Clecim) and 2,800 tonnes (SMS) with billet diameters up to 10 inches and a 6,000tpy powder coating line supplied by Interproject Corporation, USA, along with the 4,000tpy anodising facility.

Most equipment at the plant, which has fully automated production processes, is driven by PLCs, mainly supplied by Alan Bradley. Balexco follows internationally recognised standards for extrusions, namely DIN 1748 (part 4), BS 1474 and DIN 17615 (part 3). It offers a number of alloys in the 6000 series and its close proximity to the Alba smelter makes it possible for Balexco to offer flexibility of alloys. Effluent-treatment facilities make it possible to dispose of chemicals harmlessly.

The company has a total extrusion capacity of 24,000 tonnes per year, but production in 2000 was well below that at around 21,000 tonnes. But this year, with a construction boom well underway in Bahrain and other parts of the Gulf, Nambiar sees production going up to full capacity. The GCC is an important market for the company with Saudi Arabia accounting for most sales followed by the UAE. Some of the output goes to European states, Australia and the non-GCC Arab world including Yemen. Sales in tonnage increased by about 30 per cent over 1999, but profits dropped to BD 715,000 compared with BD1.2 million in 1999. The total value of sales in 2000 was given as BD19.5 million with the Gulf states accounting for BD12.2 million.

One of the significant decisions taken by Balexco was to enter into a 50-50 venture with Technal France for aluminium architectural application systems. Technal Middle East, as the venture is called, was launched last year. It buys its profiles from Balexco, imports accessories from Technal France and has the fabrication done by approved fabricators locally. Modern and sophisticated glazing solutions as well as traditional doors and windows figure in the product range. Balexco staff has made presentations before architects and fabricators at Technal product seminars in Gulf states on such topics as curtain-wall systems.

Although the tie-up is only a recent development, Balexco had been Technal France's agent for a long time in the Gulf region.

Balexco has collaborated abroad for establishing two powder-coating plants, one in Qatar and another in Kuwait. Not long ago it opened new sales support offices in Riyadh, Jeddah and Dubai to provide local customers such as architects and fabricators with a range of services including technical support. In Bahrain itself, the company opened a new showroom and warehouse in the Salmabad district. The new facility is providing fabricators with faster and more flexible deliveries and acting as a customer showcase for Balexco's range of products including windows and doors for people who are building or renovating their homes.

Even as Balexco prepares to install its anodising plant, it is contemplating introducing new technology to deliver profiles matching new trends, particularly in wood finish and colours. "Today, we cannot make that but we're working on it," says Nambiar about the innovations in those areas. "The technology is available in Europe and we plan to use it. It's a separate procedure, though related to what we're already doing. We're now not equipped for that." A profile manufacturer in Riyadh and another in Dubai are already into some kind of wood finishing.

The main aluminium raw material for Balexco's Sitra plant comes from the giant Bahrain Aluminium (Alba) complex while the chemicals are procured from German, French and other European suppliers. No problems have been encountered in the supply of any raw material for the making of the extrusion profiles, assures Nambiar.

"We're up to it in technical standards," says Nambiar, recalling the company has earned the ISO 9002 certification. "We're improving quality levels. We have upgraded machinery from time to time and now have more testing equipment." Balexco had a technical collaboration in earlier years with Aluminium Switzerland. The co-operation extended 12 years from the time Balexco began operations, becoming part-time for some years after that.

In another development two years ago, Balexco introduced an online service help customers to track the progress of their orders from the convenience of their own offices. It was believed to be the first of its kind to be offered by an extruder in the Middle East. A one-day seminar was held to demonstrate the new service to a group of customers from around the GCC. They were first taken physically through the system, visiting sales and planning offices, the dye shop, the press, the finishing section, the packing unit and the dispatch yard. The tour was followed by a "hands-on" computer exercise where customers were able to see details of their orders with Balexco.

Gulf entrepreneurs have found it easier to set up aluminium extrusion units than selling the output. Already there are at least 11 major production plants in the region - one each in Bahrain and Oman, three in the UAE, four in Saudi Arabia and two in Kuwait. But the market is abuzz that a few more are being contemplated. Understandably that will tighten the competition.

The hope is that the prevailing construction boom will stretch on to accommodate the new entrants. Budgets announced by Gulf governments have allocated large sums for infrastructure and development projects. Private companies are capitalising on the record earnings from higher petroleum prices by pushing forward with major projects, all of which means the aluminium companies will be busy for some time.