15 May 2007
The government supports sustainable industrial projects contributing to the national economy, directly and indirectly, the Minister of Industry and Commerce said yesterday.
Dr. Hassan Abdulla Fakhro at the commemorative signing ceremony for $525 million debt facilities for Gulf Industrial Investment Company (GIIC) said the current operation and the approved expansion project have and would make tangible contributions to the Kingdom's economy.
"The company currently employs over 300 people, of which close to 200 are Bahrainis with the expansion project providing additional employment to 150 people of which close to 100 will be Bahrainis.
Of the total capital budget expenditure of $500 million, over $50 million will be spent in Bahrain and the annual operating expenses of $400 million, close to $30 million will be spent in Bahrain.
"These are good contributions but, as usual, we urge all our partners in the economic development of the nation to maximise their contribution to the local economy so that the Kingdom realises its socio-economic goals. The government wants to further consolidate its efforts to maximise the contribution of the iron industry to the economy by looking seriously at the viability of creating a cluster of subsidiary iron-based industries," said Dr. Fakhro. The future of the iron and steel industry is bright.
"The demand for steel has grown from less than 600 million tonnes 12 years ago to close to 1.200 billion tonnes this year. No deceleration in growth is foreseen in the next year, and the demand is expected to reach well over 1.25 billion tonnes.
"A strong, positive trend is foreseen for Africa, Asia and South America but China remains the single largest market and the strongest growth area. Steel use in China next year will total well over 440 million tonnes - 35 per cent of the world total," said Dr. Fakhro.
"China, being also the biggest iron-ore importer, has for the first time this year set the benchmark price for iron ore. This healthy trend in the steel industry is also well reflected on the pelletised iron industry.
"The current global demand of 103.5 million tonnes per year is forecast to grow at a rate of 14.5 per cent until 2009," said Dr. Fakhro."The current regional capacity is only 5 million tonnes per year which should not pose any serious threat to GIIC."
Bahrain-headquartered Arab Banking Corporation and Bahrain-based GIIC held a commemorative ceremony for the $525.3 million senior-secured facilities and the signing of the engineering, procurement and construction contract by the company with Japan's Kobe Steel Company (KSC). Proceeds of the facilities will be used to finance the expansion of the company's existing iron-ore pelletising plant production capacity by 6 million tonnes per annum, related infrastructure and working capital.
The ceremony was attended by Dr. Fakhro, senior management from GIC, GIIC, KSC and ABC. Ghazi M. Abdul-Jawad commented, "ABC was delighted to make this significant contribution to the development of GIIC and the metal industry in Bahrain and looks forward to future mutual successes based on the bank's close relationship with GIC, GIIC and the company's other shareholders."
GIIC, located in Hidd industrial area in the Kingdom of Bahrain, was established 23 years ago and owns and operates the existing iron-ore pelletising plant with a rated capacity of around 5 million tonnes per annum. The new plant is scheduled to commence production in the third quarter of 2009. The company's target markets include Saudi Arabia, Qatar, Iran, India, Indonesia and Malaysia. Continued growth in the demand for steel is the catalyst for the company's decision to expand existing plant capacity.
The government supports sustainable industrial projects contributing to the national economy, directly and indirectly, the Minister of Industry and Commerce said yesterday.
Dr. Hassan Abdulla Fakhro at the commemorative signing ceremony for $525 million debt facilities for Gulf Industrial Investment Company (GIIC) said the current operation and the approved expansion project have and would make tangible contributions to the Kingdom's economy.
"The company currently employs over 300 people, of which close to 200 are Bahrainis with the expansion project providing additional employment to 150 people of which close to 100 will be Bahrainis.
Of the total capital budget expenditure of $500 million, over $50 million will be spent in Bahrain and the annual operating expenses of $400 million, close to $30 million will be spent in Bahrain.
"These are good contributions but, as usual, we urge all our partners in the economic development of the nation to maximise their contribution to the local economy so that the Kingdom realises its socio-economic goals. The government wants to further consolidate its efforts to maximise the contribution of the iron industry to the economy by looking seriously at the viability of creating a cluster of subsidiary iron-based industries," said Dr. Fakhro. The future of the iron and steel industry is bright.
"The demand for steel has grown from less than 600 million tonnes 12 years ago to close to 1.200 billion tonnes this year. No deceleration in growth is foreseen in the next year, and the demand is expected to reach well over 1.25 billion tonnes.
"A strong, positive trend is foreseen for Africa, Asia and South America but China remains the single largest market and the strongest growth area. Steel use in China next year will total well over 440 million tonnes - 35 per cent of the world total," said Dr. Fakhro.
"China, being also the biggest iron-ore importer, has for the first time this year set the benchmark price for iron ore. This healthy trend in the steel industry is also well reflected on the pelletised iron industry.
"The current global demand of 103.5 million tonnes per year is forecast to grow at a rate of 14.5 per cent until 2009," said Dr. Fakhro."The current regional capacity is only 5 million tonnes per year which should not pose any serious threat to GIIC."
Bahrain-headquartered Arab Banking Corporation and Bahrain-based GIIC held a commemorative ceremony for the $525.3 million senior-secured facilities and the signing of the engineering, procurement and construction contract by the company with Japan's Kobe Steel Company (KSC). Proceeds of the facilities will be used to finance the expansion of the company's existing iron-ore pelletising plant production capacity by 6 million tonnes per annum, related infrastructure and working capital.
The ceremony was attended by Dr. Fakhro, senior management from GIC, GIIC, KSC and ABC. Ghazi M. Abdul-Jawad commented, "ABC was delighted to make this significant contribution to the development of GIIC and the metal industry in Bahrain and looks forward to future mutual successes based on the bank's close relationship with GIC, GIIC and the company's other shareholders."
GIIC, located in Hidd industrial area in the Kingdom of Bahrain, was established 23 years ago and owns and operates the existing iron-ore pelletising plant with a rated capacity of around 5 million tonnes per annum. The new plant is scheduled to commence production in the third quarter of 2009. The company's target markets include Saudi Arabia, Qatar, Iran, India, Indonesia and Malaysia. Continued growth in the demand for steel is the catalyst for the company's decision to expand existing plant capacity.
© Bahrain Tribune 2007
