Leading European metal producer Aleastur has launched the region’s first plant for aluminium grain refiners and master alloys production at its new Middle East base in Bahrain.
The new $15-million site will supply specialty alloys to global markets, including Asia, North America and the GCC.
Aleastur’s new hub is part of a broader plan, in partnership with the kingdom’s sovereign wealth fund Bahrain Mumtalakat Holding Company – which acquired a significant stake in the company in 2016 – to develop the kingdom’s downstream aluminium sector and strengthen synergies between local manufacturers and key international players, said Bahrain’s Economic Development Board (EDB).
The Bahrain facility will be exporting approximately 85 per cent of its annual production to regional players in the industry, including main aluminium smelters and cast-houses, it stated.
Headquartered in Asturias, a region of the northwest Spain, Aleastur is one of the top aluminium grain refiner players in the world and is expected to hit revenues in the new facility of nearly $53 million by 2025 as it ramps up foreign exports.
This Bahrain hub will be its first overseas facility and will produce high quality aluminium alloys to be used for different purposes across various industries.
As part of its expansion strategy, the new facility, which is designed to be an ideal aluminium downstream hub, will reduce lead times and strengthen supply chains for the aluminium industry in the region and neighbouring markets as global economies begin to reboot and construction projects resume.
Commenting on the announcement, Mumtalakat CEO Khalid Al Rumaihi, said: “As one of our key investments, Aleastur’s presence in Bahrain will add significant value to the growing downstream aluminium cluster which will enable them to cater to the growing demand in the region and beyond. We look forward to seeing their operations expand and are excited by the prospects this next phase for Aleastur brings.”