Aluminium Bahrain B.S.C. (Alba) announced last week the signing of a memorandum of understanding with Chinese aluminium firm Hangzhou Jinjiang Group Co. Ltd (HJJ) to collaborate on supplying Alba’s aluminium smelters with alumina.
The memorandum, which was signed in a virtual ceremony last month, establishes an agreement to investigate the possibility of forming a collaboration aimed at securing a steady supply of raw materials for Alba’s aluminium smelting operations
Shaikh Daij bin Salman bin Daij Al Khalifa, Alba’s Chairman, described the benefits such an arrangement is expected to provide to both parties in a related press release.
“This Memorandum of Understanding translates Company’s strategy to have a vertically integrated business model as well as partially hedge against Alumina price volatility and supply constraints. We are also excited to explore more avenues for collaboration with HJJ which will further consolidate Alba’s status as one of the world’s leading aluminium producers.”
Madam Wang Yuanluo, Hangzhou Jinjiang Group Co. Ltd chair, elaborated on the agreement.
“This MoU represents the first and important step for Aluminium Bahrain and Hangzhou Jinjiang Group as they commence a long and mutually beneficial relationship. We, Hangzhou Jinjiang Group, a leading Alumina producer, are committed to our international expansion plans, building and operating Alumina refineries in strategic locations, to provide high quality products at competitive terms to our valuable customers.”
Alba is one of the largest industrial companies in the Middle East and is the world’s biggest aluminium smelter outside the People’s Republic of China. Originally incorporated in 1968, the company is based in Bahrain and 84% of its total workforce are Bahraini nationals. It began operations in 1971 with a 120,000 metric ton annual capacity. Modernization bumped the output up to 450,000 metric tons in 1992. In the spring of 2005, Alba opened Line 5, raising output by 860,000 metric tons per year. In 2019 Alba’s smelter produced 1,365,005 metric tons of primary aluminium.