Alba embraces Industry 4.0 with SAP S/4HANA Cloud

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MANAMA (ALBH): Aluminium Bahrain B.S.C. (Alba), one of the world’s largest aluminium smelters, has inked an agreement with SAP, a market leader in enterprise application software, to upgrade its enterprise resource planning solution (ERP) to SAP’s latest software – S/4HANA Cloud. With this move, Alba will accelerate its digital transformation journey and Industry 4.0 adoption to adapt to ever-changing business needs.

A signing ceremony was held on 02 May 2024 at Alba’s premises, which was attended by Alba’s Chief Executive Officer, Ali Al Baqali, and Senior Vice President of SAP Middle East Africa – North, Ahmed Jaber Al-Faifi, along with senior officials from Alba and SAP.

Alba’s Chief Executive Officer, Ali Al Baqali, commented on this occasion:

“At Alba, we are not just transforming digitally, we are revolutionising aluminium production.

This advanced solution isn't just about our digital transformation, it's rather the catalyst that propels Alba to the forefront of Industry 4.0. Embracing advanced computing and unlocking real-time data will not only optimise our operations but empower every facet of our business to innovate the future of aluminium production in line with Bahrain Economic Vision 2030.”

Additionally, Saquib Ahmad, Managing Director, Bahrain, SAP commented:

“This new deployment represents a significant milestone in Alba’s digital transformation journey and aims to further align its operations with Bahrain Economic Vision 2030 while enhancing services to customers and partners. By streamlining, integrating, and automating core business functions and processes, Alba will be free to focus on innovating its core business and setting new industry standards.”

The new SAP S/4HANA Cloud is a complete, modular, and award-winning ERP software designed for the cloud offering scalable architecture, real-time data processing, integrated advanced analytics, better optimisation for speed and performance as well as enhanced user experience for Alba users, customers and suppliers.

Alba's extensive partnership with SAP, spanning over 25 years, is clearly evident in applying SAP solutions across the Company’s core functions like production, maintenance, sales, procurement, HR, and more.

-Ends-

About Aluminium Bahrain B.S.C. (Alba)

[Ticker: ALBH]

A Global Aluminium Leader: At plus-1.62 million metric tonnes per annum (mtpa) (2023), Alba is a world-leading aluminium smelter with a proud 50-year legacy in operational excellence, safety, environmental responsibility, and community development.

Trusted Partner: A cornerstone of the Bahrain’s economy, Alba produces high-quality aluminium, including standard and value-added products, which are exported to over 270 customers globally. With sales’ offices in Europe (Zurich), Asia (Singapore), and a subsidiary in the U.S., Alba is a reliable partner on the world stage. Alba is dually listed on Bahrain Bourse and London Stock Exchange and its shareholders are Bahrain Mumtalakat Holding Company B.S.C. © (69.38%), SABIC Industrial Investments Company (SIIC) (20.62%) and General Public (10%). Alba adheres to the highest international standards, holding certifications such as ISO 9001, ISO 14001, ISO 27001, ISO 45001, ISO 18788, IATF 16949:2016, ISO 22301:2012 Business Continuity Management System (BCMS), ASI Performance Standard Certification, ASI Chain of Custody Standard Certification and Ecovadis Certification.

Pioneering Sustainability: As the first aluminium smelter in the Middle East, Alba is central to Bahrain's thriving downstream aluminium sector, contributing significantly to the Kingdom's GDP. Committed to social responsibility, Alba employs a workforce that is 86% Bahrainis (2023) and invests heavily in employee training and development. Alba also plays a crucial role in the Aluminium Downstream Park, therefore increasing the contribution of non-oil sectors to the GDP of Bahrain. Alba has been recognised for its initiatives to produce Aluminium responsibly through awards such as Top ESG performer in Bahrain by ESG Invest, Safeguard Label from Bureau Veritas and Best Corporate Governance Award by Ethical Boardroom.

Recognised for its environmental practices, social contributions, and corporate governance, Alba launched a comprehensive ESG Roadmap in 2022 focusing on 6 priority areas: (1) Decarbonisation, (2) Green Energy & Aluminium, (3) Circular Economy & Secondary Aluminium, (4) Employee Welfare, (5) Collaboration & Partnership and (6) Transparency, Communications & Due Diligence. Since its inception, Alba has invested into numerous environment, sustainable and socio-economic development projects that have had a positive impact on the society. Alba’s first-of-its-kind US$37.5 million zero-waste Spent Pot Lining Treatment Plant, the upcoming +6 MW Solar Farm Project and the Power Station 5 Block 4 Project are tangible initiatives aligned with Bahrain’s Net Zero Carbon Targets by 2060 led by HRH the Crown Prince and Prime Minister of Bahrain.

Safety First, Always: Guided by the motto "Safety First, Safety Always," Alba prioritises the well-being of its employees and contractors. The Company achieved a record-breaking 30 million safe working hours without a lost-time injury in September 2022. The Company has been recognised internationally for its excellent Safety and Health track record with awards such as the RoSPA President’s Award for winning RoSPA Gold Medal Award 10 years in a row, the British Safety Council’s International Safety Award with Merit along with 4-Star Audit Rating, as well as numerous awards from the National Safety Council (NSC).

Alba Power Station 5 (PS5) Block 4 Expansion Project

Alba's PS5 Block 4 is a new 680.9-megawatt (MW) combined-cycle power plant that expands the existing PS5 facility. This state-of-the-art J-class gas turbine addition boasts superior efficiency compared to Power Stations 3 & 4. Scheduled for completion in Q4 2024, Block 4 will boost PS5's total capacity to 2,481 MW, while reducing greenhouse gas emissions by 0.5 tonnes of CO2 per tonne of aluminium produced.

A consortium of Mitsubishi Power and SEPCOIII is responsible for the entire project lifecycle, from design and engineering to construction and commissioning.

Alba Stakeholder Engagement Plan

Alba prioritises open communication with all its stakeholders, including the community, environmental and social groups. Through its Stakeholder Engagement Plan, the Company proactively addresses environmental and social impacts of its operations, outlining clear mitigation controls. Alba also maintains an external Grievance Mechanism accessible through the Code of Conduct, allowing stakeholders and the public to voice concerns and raise issues.

Alba’s External Grievance Mechanism

Alba prioritises ethical conduct and environmental responsibility. Stakeholders, employees, contractors, and the community can confidentially report any potential breaches of Alba's Code of Conduct or raise concerns about environmental and social impacts through the Alba Integrity Line. This independent, multilingual hotline operates 24/7 and is accessible via a toll-free phone number, the company intranet, or the website at www.albasmelter.com.

For further details, please contact:

Eline Hilal

Director, Investor Relations, Insurance & Corporate Secretary

Investor Relations Department

E-mail: eline.hilal@alba.com.bh

Website: www.albasmelter.com