07/07/2015 04:23 AST
Bahrain-based aluminium rolling mill Garmco has announced industrial engineering firm Fives will be its partner in the construction of a new casthouse costing $55 million.
The new re-melt and casting facility will add 120,000 metric tonnes (mt) to Garmco’s current aluminium slab production capacity of 165,000 mt, a statement said.
Garmco also expects the project will develop its metal recycling capability and lower the cost of metal casting.
Fives, a major supplier of machines, process equipment and production lines, has been tasked with the engineering, procurement and construction (EPC) of the project on a turnkey basis.
The first stage of the project, which entails the building of a scrap storage area and segregation unit, has already begun and is being managed internally by Garmco with the support of a local supplier.
The project is expected to be completed in about 21 months, starting from September this year.
“The expansion will create 50 new jobs for Bahrainis and generate significant cost savings,” Garmco chairman Mahmood Al Soufi said in
the statement.
“This project, alongside one or two others, forms an integral part of a three year strategy and will contribute to the profitability and growth of the company regionally and internationally.”
With a network of subsidiaries and associates companies across the Middle East, Asia, Far East, Australia, Europe and the USA, Garmco has more than 830 employees globally and an annual turnover exceeding $450m.
Garmco chief executive Jean-Baptiste Lucas said the re-melt expansion project would “improve efficiency – both in terms of the value and savings that can be extracted – but also in terms of furthering our commitment to sustainable operating and manufacturing practices”.
GDN had first reported in July last year that the Garmco expansion was planned in parallel with Alba’s potline 6 expansion.
The company’s then chief executive Graham Bruce had told the GDN that Alba was a fundamental part of Garmco’s supply chain and supplied the bulk of its raw material needs.
“In fact, we would like to purchase more, which is why we look forward eagerly to the potline 6 expansion and Alba being able to cover more of our needs than at present,” he had said.
Garmco’s shareholders are Mumtalakat, Sabic, Industrial Bank of Kuwait, Gulf Investment Corporation, Government of Iraq, Government of Oman and Qatar Holding Company.
Gulf Daily News
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