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- Enhanced production aligns with Bahrain’s Economic Vision 2030 and ambitions for the industrial sector, enhancing Company’s growth and contributions towards GDP and exports
Manama : Bahrain Steel BSC (“The Company”), a leading producer and global supplier of high grade iron-ore pellets and a subsidiary of Foulath Holding (“Foulath”), today announced that it has successfully reached record production of 12 million tons of iron-ore pellets in 2021. Now operating over the rated production capacity of 11 million tons, Bahrain Steel is better positioned than ever to meet growing customer demand and to support global post-pandemic economic recovery. Increased output also enables the Company to help facilitate the transition towards carbon neutrality, which is heavily dependent on significant a increase in the use of pellets for more efficient, clean and sustainable production of steel around the world.
This important milestone also aligns to the Kingdom of Bahrain’s Economic Vision 2030, Economic Recovery Plan and the Industrial Sector Strategy (2022-26), which call for an increase in the industrial sector's contribution to GDP, exports and job creation, with Bahrain Steel already contributing more than 4% of GDP and 25% to the country’s non-oil exports as well as employing 260 Bahraini nationals.
Record production was achieved by meticulous strategic planning and supported by strong collaborations with the Company’s supply chain partners including a watershed agreement signed in 2019, when production stood at 8 million tons per annum, with Anglo American Marketing Limited (Anglo American), the global mining giant. This strategic 20-year agreement secured a majority of Bahrain Steel’s required pellet feed for full production capacity at 12 million tons, ensuring uninterrupted delivery to its customers which include some of the world’s leading steel producers across the Middle East and North Africa, Europe, North America, Malaysia, South Korea and China, among others.
Commenting, Mr. Meshary Al-Judaimi, Chairman of Foulath and Bahrain Steel, said, “We’re delighted with this milestone, despite the very challenging conditions of last 24 months as a result of the pandemic. We view Foulath and Bahrain Steel as pillars to the development of the region’s steel industry. As the only GCC owned pellet producer and a reliable supplier to all regional steel manufacturers, Bahrain Steel’s ability to meet increasing demand for pellets in greener steel production is inextricably linked with sustainable economic growth, both in the region and around the world. We look forward to continuing to support our customers and to enhancing capacity in line with the requirements of the customers we serve.”
Mr. Dilip George, Group CEO of Foulath and Bahrain Steel, added, “We successfully implemented a strategic shift since 2019 focused on customer centricity as a core value and driver of growth. We have transformed our business model and raised our production by delivering the quality and quantity of pellets demanded by our customers, rather than only trying to sell what we could produce each year. With this change in strategy, and the strong partnership with Anglo American, we were able to increase
production by an impressive 50% compared to 2019, strengthening our position as a leading global supplier of high quality DR pellets. I’d like to take this opportunity to acknowledge the unwavering support of our loyal customers, the dedication of our staff and valued partners, the confidence of our shareholders and the conducive business environment offered by the Kingdom of Bahrain, which have all been the building blocks of our success and which will continue to guide our journey.”
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About Bahrain Steel
Bahrain Steel, located in the Kingdom of Bahrain (Middle East), is a leading producer of high-grade iron-ore pellets. Its twin plants have a combined rated capacity of 12 million tonnes of pellets a year. Discover more about Bahrain Steel at www.bahrainsteel.com.bh
For more information contact:
FinMark Communications
Zahraa Taher
Tel: +973 39630997
Email: ztaher@finmarkcoms.com
© Press Release 2022
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