Alba signs long-term agreement with Fluorsid

Aluminium Bahrain B.S.C. (Alba), home-base of the Line 6 Expansion Project, is pleased to announce that it has secured a long-term agreement with Fluorsid S.p.A., a leading producer of fluorochemicals based in Italy, for the supply of smelter grade Aluminium Fluoride (ALF3).

The agreement comes as part of Alba’s Line 6 Expansion Plan, which will make it the world’s largest smelter with a total production of 1.5 million metric tonnes with the ramp-up of Line 6.

Commenting on the agreement between Alba and Fluorsid, Alba’s Chief Executive Officer Tim Murray said:

“Alba has a long-strategic partnership with Fluorsid spanning over decades. We are pleased to know that Fluorsid is establishing its regional warehouse in Bahrain and closer to Alba plant.

This agreement will strengthen our collaborative relationship and enable us to continue to offer the best value to our clientele.”

Adding further, Lior Metzinger, Managing Director of Fluorsid S.p.A. said:

“In Fluorsid Group, we firmly believe in long-term partnerships and constant improvement of our products’ quality and customer services. The signature of this agreement with Alba as well as the establishment of our logistic centre in Bahrain through Simplis Logistics represent an important milestone in the historical cooperation between Alba and Fluorsid.”

Thierry Petersen, Chairman of Simplis Logistics WLL also commented:

“In line with the long-lasting strategic relationship between Alba and Fluorsid, Simplis Logistics’ dedicated warehouse and logistics operations have been set-up in the Bahrain Logistic Zone to ensure a proximate, reliable and uninterrupted supply of raw materials to Alba as well as other aluminium smelters in the Gulf region.”

One of the world’s largest producer of aluminium fluoride and synthetic cryolite, Fluorsid meets the bulk of Alba’s yearly ALF3 requirements for its annual metal production.

-Ends- 

About Alba

Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 981,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.

Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company’s shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%). 

About Line 6 Expansion Project 

Alba’s Line 6 Expansion Project is one of the largest brownfield developments in the region. Expected to begin production by January 1st 2019, this Project will boost the smelter’s per-annum production by 540,000 metric tonnes, bringing its total production capacity to 1.5 million metric tonnes per year.

With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line utilising EGA’s proprietary DX+ Ultra Technology, a 1,792 MW Power Station (Power Station 5) and other industrial services.

Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor. J.P. Morgan, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.

In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility comprising two tranches: Conventional Facility & and Islamic Facility in October 2016, the 1st tranche of the Export Credit Financing of c. US$ 700 million for Euler Hermes and SERV-covered facilities in July 2017 and the first part of 2nd ECA-tranche of EUR 204.5 million for Bpifrance Assurance Export (“BpiAE”) and Euler Hermes-covered facilities in April 2018. The Company is looking to secure the final part of 2nd ECA-tranche by Q3 2018.

The Front End Engineering Design (FEED) study for the Project was completed in the first quarter of 2017. The construction site-works have started in the second quarter of 2017 while the mass earthworks was completed by the end of the third quarter of 2017 as per schedule. Alba has also laid the First Concrete in Potline 6 Foundation in May 2017 wherein the concrete foundations will reach 85,000 m3 upon completion by December 2018. As of September 30, 2018, Line 6 Smelter’s Overall Progress advanced by 70% (Engineering progressed by more than 93% while Contracts and Procurement advanced by 99%); Power Station 5 & Power Distribution System Overall Progress exceeded 72% and 94% respectively.

The Line 6 Expansion Project will make Alba the world’s largest single-site aluminium smelter and be a significant economic boost for the Kingdom of Bahrain due to the many co-investment opportunities through local and foreign aluminium investments. 

Alba External Grievance Mechanism

Alba, in line with the Performance Standards of the International Finance Corporation (IFC), a World Bank affiliated lending organisation, has launched its External Grievance Mechanism to receive and facilitate the resolution of the affected communities’ concerns and grievances about Alba’s Environment and Social (E&S) performance.

External grievances about Alba’s E&S performance can be logged via the Alba Integrity Line - an independently operated confidential reporting hotline in multiple languages - via a toll-free phone system or via the intranet 24 hours a day, every day. 

For further details, please contact:

Shreedevi Menon

Corporate Communication Officer

Investor Relations Department

Tel:         (973) 1783 7357

E-mail:   shreedevi@alba.com.bh

Website: www.albasmelter.com  

Follow us on:

http://www.twitter.com/Alba4World

http://www.facebook.com/Alba4World

http://www.instagram.com/Alba4World

http://www.linkedin.com/company/aluminium-bahrain

http://www.youtube.com/Alba4World

© Press Release 2018