Aluminium Bahrain a global leader

Aluminium Bahrain, more commonly known by its acronym, ALBA, is by any measure one of Bahrain’s great success stories. Under the leadership of its visionary chief executive, Mr. Karim Salimi, the company has ascended to an undisputed position of leadership in the aluminum industry, not only in the Middle East region, but worldwide. The name ALBA has come to be synonymous with quality aluminum.
The company was incorporated by the Amiri Charter in 1968 and officially commissioned on May 11, 1971. The three shareholders are the Government of Bahrain, with 77 percent of the company, the Saudi Public Investment Fund, with 20 percent, and Breton Investments, with three percent. One of the primary reasons for its creation was the decision of the Bahraini government to diversify its economic base away from a heavy dependence upon oil. The aim was to establish a suitable industry that would provide valuable export earnings, develop the country’s resources and create training and employment opportunities for a large number of Bahrainis. With the celebration this year of Aluminium Bahrain’s 30th anniversary, it can safely be said that all of these objectives have been accomplished. As a testament to this, ALBA has fulfilled one of the government’s main objectives, to invest in the people of Bahrain. Today, the company has one of the highest Bahrainisation levels in the country, with 87% of the workforce being Bahraini citizens.

A view of ALBA’s 450,000 tons per year coke calcining plant

Salimi is excited about the future of his company and Bahrain. ALBA is currently considering a major expansion program which would increase total yearly production of aluminum from the current 500,000 tons to 750,000 tons. He hopes that production will later expand to one million tons, further increasing the company’s cost efficiencies. ALBA is already known as one of the most cost-efficient smelters in the world.
Approximately 60 percent of ALBA’s output is sold to the various downstream aluminum companies located in Bahrain, as well as to other companies throughout the Gulf and the Middle East. The remaining 40 percent is sold primarily to ALBA’s traditional markets in the Far East, which include Japan, the People’s Republic of China, Taiwan, and Malaysia. In all, ALBA exports to more than 25 countries throughout the world.
Salimi believes that self-sufficiency, supported by efficiency and product quality, is a key strategic priority for Aluminium Bahrain. The company has a 1504 megawatt power plant on site, which enables it to supply all of the energy needed for aluminum production. In addition, ALBA has recently begun trial operations of a new coke calcining plant, which will ultimately produce 450,000 tons of calcined coke per year, about half of which will be exported. Calcined coke is a raw material used to make carbon anodes, which play an essential part in the electrolytic process of producing aluminum.
Aluminium Bahrain takes its responsibility to the local community very seriously. Salimi explained that, in support of that commitment, "we are producing energy over and above our requirements because we believe we can help the Bahrain government, and to this extent we are providing almost 25 percent of the nation’s energy requirements during the time that they most need it," which is during the island country’s extremely hot and dry summer months. Salimi believes that the most important factor in Bahrain’s economic success over the past several decades has been its people. To nurture this resource, ALBA has initiated strategies for human resources development and the fostering of safe working practices. It also plays a key role in the community and economy of Bahrain, funding and supporting major events, exhibitions and sporting competitions each year.

A. Karim Salimi, Chief Executive, ALBA

ALBA has had a close relationship with companies in the United States since its inception. Until its new calcined coke plant is online, Aluminium Bahrain will continue to import calcined coke from the United States. One of its primary suppliers is Great Lakes Carbon (GLC), which provides all of the company’s requirements for the product. Even when the calciner is in full operation, Aluminium Bahrain will need to import green coke, the raw material of calcined coke, from the United States. The company purchases approximately one million tons of alumina, another product necessary for making aluminum, from ALCOA’s operations in Australia. At the present time, ALBA does not export its finished aluminum directly to the United States. However, Salimi indicated that upon completion of the expansion project the company is looking at the possibility of doing so in the future.
While several downstream industries already exist in the Bahraini aluminum sector, Salimi stressed that the potential for additional investment in the sector is almost limitless, proclaiming that "with the incentives and opportunities given by the Bahraini government, there is no excuse for foreign investors to stay away." The additional output of top quality aluminum from Aluminium Bahrain’s smelter provided by the completion of the expansion project should enable many new companies to thrive. Salimi explained that aluminum applications in such sectors as the automotive industry have barely begun to be exploited by new investment. Aluwheel, which produces about 10,000 tons of aluminum wheels per year, is the only aluminum-based automotive business currently in operation in Bahrain. But the automotive industry is gradually replacing steel with aluminum, and all components can be produced in Bahrain, as can aluminum-based items such as electronics products and electronics components, aircraft and aircraft components, household goods, furniture and cargo shipping containers. Salimi declares that the country is ready and waiting to assist foreign investors in setting up shop.
Salimi explained that along with a commitment to producing a high-quality product, ALBA is equally committed to producing that product in an environmentally responsible manner. He said that the Bush Administration’s decision to opt out of the Kyoto Convention on global warming could have adverse effects on the aluminum and other industries throughout the world. He thinks that while most companies will stick to the environmental protection plans they have in place, some unscrupulous companies might relax their environmental standards, reasoning that if it is okay for the United States to do so, it must be okay for them. In any case, according to Salimi, ALBA is "vigorously pursuing ways to improve our environment, and as they say, we leave no stone unturned in order to find ways to eliminate our emissions, and improving our environment in any way we can."

ALBA’s Reduction Line 4, built in 1992, and producing around 250,000 tons of primary aluminum per year.

In 2001, ALBA was presented with a GCC award for the best environmental activities by an industrial establishment. In 2000, as evidence of its world class commitment to environmental responsibility, the company was accredited with the Environmental Management System standard ISO 14001. In addition, in the summer of 2000, ALBA was presented with the Millennium Business Award for Environmental Achievement. This is a prestigious honor conferred upon only 12 companies worldwide and was presented by the United Nations Environment Program in conjunction with the International Chamber of Commerce. As a winner of this award, ALBA, represented by Mr. Salimi, joined 43 major companies from around the world at the ‘Global Compact’ meeting in the summer of 2000. The gathering was chaired by United Nations Secretary-General Kofi Annan at United Nations Headquarters, where matters concerning the need for universal values in the areas of human rights, labor and the environment were discussed. ALBA was the only company from the Middle East to attend the event.
Salimi sees only positive times ahead in matters of foreign policy between Bahrain and the United States. He asserts that "the Bahraini and United States governments have an extremely good relationship. I am sure that the relationship will go from strength to strength. There is no doubt about that, because of our current government policies, and of course the special relationship between our two nations."