Investment in Aluminum Sector to Reach $20bn

MANAMA, Sep 22, 2010 (Arab News - McClatchy-Tribune Information Services via COMTEX) -- With the GCC (Gulf Cooperation Council) becoming a major player in the international aluminum industry, new investments in the Gulf's aluminum sector are expected to exceed $20 billion by 2020, said a senior Bahraini minister on Tuesday.

Hassan Abdulla Fakhro, minister of industry and commerce, who opened the three-day 25th International Aluminum Conference in Bahrain, said that the aluminum industry in the region was expected to see a large increase over the next decade with production expected to triple to nine million tons annually by 2020, or around 13 percent of the world market, compared to 2.15 million tons in 2008.

"The aluminum industry has been directly affected for sure by the financial crisis, since the metal is used in a wide variety of consumer products from packaging to automobiles, from construction to aerospace," he said.

Bahrain, he said, over the past few decades has built a most diversified economy in the region with manufacturing contributing over 17 percent of the GDP (gross domestic product).

"The manufacturing sector is one of the fastest growing segments of the economy, and is driven by the growth in oil-related and aluminum-based industries, which dominate this sector. The aluminum industry is a major contributor to growth, and with Aluminum Bahrain (ALBA) being the largest one aluminum smelter in the world, a strong and vibrant downstream industry has emerged," he said.

"Industrial development and diversification is a key focus of the Kingdom of Bahrain's Vision 2030, designed to create a sustainable economy to support the aspirations of the nation toward a higher standard of living for its entire people and for the generations to come. Along this road to industrial diversification, we are building a world class industrial infrastructure, at its core is the Salman Industrial City, an holistic development located in close proximity to the main transport artery, and is a manifestation of Bahrain's industrial policy initiatives, comprising the established Hidd Industrial Area, home to 30 of Bahrain's most significant industries together with two new landmark developments Bahrain International Investment Park (BIIP), and Bahrain Investment Wharf (BIW)." The Bahrain International Investment Park is built to the highest international standards, consists of 250,000m2 and is designed to attract export-oriented companies with high value projects, he said.

The BIW is the $1.6 billion development of the private sector Tameer Co. and is currently the largest mixed used industrial development of its kind and size in Bahrain. Covering an area of over 1.7 million square meters, this groundbreaking project is a mixture of industrial, logistics, business, commercial and accommodation development, and is the only privately owned, operated and managed park of its kind in Bahrain. It offers investors pre-serviced plots supported by state of the art infrastructure, communication links and world class services, and consists of 415 acres incorporating 164 individual plots, all adjacent to the Bahrain International Airport and the Logistics Park.