The government of Bahrain and US-based aluminium producer Alcoa have signed a Memorandum of Understanding (MOU), paving the way for Alcoa to acquire up to a 26 percent equity stake in Aluminium Bahrain (Alba).
"The Government of Bahrain's plans and objectives include attracting inward investment to the Kingdom -- and we believe that having Alcoa as a business partner is a significant step in this direction," said Bahrain Minister of Oil and Chairman of the Alba board of directors, Shaikh Isa Bin Ali Al-Khalifa.
The four-potline Alba smelter is one of the world's lowest cost facilities, serving markets in the Middle East and Asia. Alba is currently adding a fifth line which, when completed in 2005, will bring its overall capacity to 819,000 metric tons per year (mtpy) and make it the largest aluminium smelter in the world outside Eastern Europe. The MoU is designed to accelerate plans for an additional expansion, a sixth line with 307,000 mtpy of additional capacity.
Alba also owns and operates a carbon department, a marine terminal, a 1,500 mega watt power plant, a 450,000 ton per annum coke calcining plant and a desalination plant to support the smelter.
Alcoa World Alumina and Chemicals, an alliance between Alcoa and Alumina, is currently the primary supplier of alumina to Alba. AWAC has been one of Alba's major alumina suppliers since the smelter was commissioned in 1971.
Final agreements on the equity stake in the smelter and the alumina supply arrangements are expected to be concluded by mid-2004. The agreements will become effective upon completion of the fifth pot-line in March of 2005. Alcoa and Alumina are conducting separate discussions on AWAC's possible participation in the Alba equity transaction.
Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap foils and plastic wraps, Alcoa wheels, and Baco household wraps. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
