By Farishta Saeed
Manama, Nov. 18 (BNA): Bahrain Mumtalakat Holding Company signed today a joint venture with Synergies Castings Limited, one of India’s leading aluminium asters and manufacturers of alloy wheels, to establish an aluminium casting and speciality alloy wheel manufacturing facility in Bahrain.
This will be a cornerstone project at the new molten metal park, being developed adjacent to Aluminium Bahrain (Alba), which is a combined initiative between Mumtalakat and the Bahrain Economic Development Board (EDB) as part of efforts to further diversify the aluminium sector as the industry moves towards attracting higher value added downstream capabilities.
The facility will have comprehensive design, engineering, advanced simulation, product development and manufacturing capabilities with an annual production capacity of approximately 25,000 metric tonnes.
The manufacturing facility is expected to create approximately 600 new jobs in Bahrain.
Mumtalakat will held a 49 per cent stake in the joint venture with Synergies, and will support the project by procuring all necessary approvals prior to production, as well as making land plots available, providing infrastructure support and facilitating access to local debt financing.
Synergies will be responsible for facility design and implementation, engineering support, operations, marketing and day-to-day management.
The EDB played a key role in attracting Synergies to Bahrain and will continue to provide consultancy and investor facilitation support for the new joint venture.
“The signing of this strategic agreement with Synergies is part of our efforts towards the development of Bahrain’s downstream sector and will make a positive contribution to the Kingdom’s economy,” Mumtalakat Chief Executive Officer Mahmood Al Kooheji said during the signing ceremony.
“Mumtalakat is committed to supporting the next phase of major development projects in Bahrain’s private and public sectors. As part of this, we have made a number of investments in domestic projects and continue to identify and partner reputed international organizations operating in areas that complement our portfolio and establish joint operations in Bahrain,” he said.
EDB Chief Executive Khalid Al Rumaihi said: “We are delighted to have played a central role in the establishment of this joint venture, which will help to further develop Bahrain’s downstream aluminium sector and continue efforts to diversify the economy. Aluminium plays an important role in our non-oil economy and exports, and this initiative will create high quality jobs for Bahrainis.”
Aluminium has been part of the fabric of Bahrain ever since Alba, the fourth largest smelter in the world where Mumtalakat is the largest shareholder, was founded back in 1968. Alba currently has almost a million tonnes of capacity, which will be expanded by around 50 percent with the addition of a sixth production line.
In the interests of both Alba and the Bahraini economy, Mumtalakat is working to diversify Alba’s consumer base, create sufficient demand for the additional capacity and attract Foreign Direct Investment for projects in the downstream aluminium sector. The joint venture with Synergies is an example of this, and the facility, once complete, will benefit from Alba’s increase in liquid aluminium production while strengthening Bahrain’s position at the forefront of the aluminium industry.
“We were most impressed not only with the hot metal availability and the impressive infrastructural facilities and support available in Bahrain, but by the progressive mind-set and proactive approach of the Mumtalakat team and the EDB,” Synergies President Shekhar Movva said. “We are delighted to have Mumtalakat as our partner, and believe that our mutual strengths will enable us to build a world class, state-of-the-art alloy wheel manufacturing company in Bahrain.”