Launching EternAl to achieving 25 million safe working hours, Alba's pathbreaking milestones inspire in 2024

Aluminium Bahrain B.S.C. (Alba), the first aluminium smelter in the Middle East and the world's largest smelter ex-China with a production of more than 1.548 million tonnes per annum has achieved several milestones in 2024 and marked many crucial benchmarks for the entire global aluminium industry. From enhancing its Industry 4.0 transformation and entering into strategic partnerships for new ventures to attaining 25 million safe working hours without lost time injury (LTI) and robust profit, Alba has outperformed in all spheres.

Image Source: Aluminium Bahrain (Alba)

Key milestones achieved

In May 2024, Aluminium Bahrain launched a new low-carbon aluminium product line called EternAl with two variants: EternAl-30 and EternAl-15. As the names suggest, they have 30 per cent and 15 per cent recycled content. Alba's EternAl product line reflects the company's novel stride towards creating a greener future through using secondary aluminium and advocating a circular economy. It also addresses the growing demand for low-carbon aluminium across the globe.

Two months later, in July, Alba secured Capral Aluminium, Australasia's only ASI Certified extruder, as the first customer for its revolutionary EternAl low-carbon aluminium primary billet. Capral will produce its extruded aluminium products with EternAl billet and supply to marine, defence, transport, and construction industries.

In October 2024, Alba reported its achievement of 25 million safe working hours without Lost Time Injury (LTI), the highest notes in safety, following the attainment of 20 million working hours without Lost Time Injury (LTI) in June 2024. In October, the company also announced that for the eighth consecutive summer, it achieved ZERO heat-related injuries and illnesses. This milestone reflects Alba's unwavering commitment and dedication towards its employees' well-being. The company's multiple accolades won throughout the year, like the Royal Society for the Prevention of Accidents (RoSPA) President's Award and the prestigious British Safety Council (BSC)'s International Safety Award with Merit, also represent Alba's responsibility to safe operations.

During the first half of 2024, Alba received the highest recognition for sustainability by securing the EcoVadis Platinum Rating. This prestigious award placed Alba among the elite 1 per cent of companies evaluated worldwide.

The company's journey towards digital transformation concerning safety has also been given due recognition by the prestigious Brandon Hall Group HCM Excellence Award 2024 (Bronze Medal) for its Virtual Reality (VR) and Augmented Reality (AR) Projects in Plant Operations training. 

Strategic partnerships

Alba's seamless operations in 2024 could be possible due to strategic collaborations with cutting-edge technology providers and investments in advanced digital software. In May 2024, Alba inked an agreement with SAP, a market leader in enterprise application software, to upgrade its enterprise resource planning solution (ERP) to SAP's latest software – S/4HANA Cloud. This transformation is expected to revolutionise Alba's aluminium production, bringing the company to the forefront of Industry 4.0.

A few months later, Alba further accelerated its digitalisation journey through advanced AI, data analytics, and automation solutions by collaborating with ARRAY Innovation, a Bahrain-based leader in AI and cloud-native digital solutions. Deploying tailored AI, machine learning, and data analytics solutions, ARRAY Innovation will help Alba develop new standards for production, safety, and sustainability in the aluminium industry.

In addition to focusing on digitalisation, Alba also formed strategic partnerships to diversify its operations, optimise processes, drive expansion, and strengthen technology. For instance, in March 2024, Alba signed a contract with Emirates Global Aluminium (EGA) to secure technology services for its Reduction Line 6. Under this agreement, EGA agreed to provide Alba's Reduction Line 6 with technical support, monitoring services, and operational consultation. The agreement also covered operational and process audits, technical training workshops, as well as hands-on operation support among others.

In August 2024, Alba signed an agreement with Japan's leading aluminium product manufacturer, Daiki Aluminium Industry Company Ltd, to establish a sustainable aluminium dross processing facility in the Kingdom of Bahrain, where they will employ state-of-the-art technologies to recover the lightweight metal while significantly reducing waste and carbon emissions. Alba will hold a 70 per cent stake in the joint venture, while Daiki will have the remaining 30 per cent. The targeted time to commence operations at the facility is September 2026.

In September, Alba acquired approval from the Board of Directors to enter into a non-binding agreement with Maaden to begin due diligence on a potential business combination. This strategic partnership will position the merged entity as one of the largest aluminium producers. The combination is set to deliver significant synergies, including expanded production capacity, a strengthened global presence, enhanced ESG (Environmental, Social, and Governance) performance, and improved energy security.

At the beginning of 2024, Alba secured a 10-year natural gas supply deal with Bapco Upstream, a 100 per cent-owned subsidiary of Bapco Energies. Besides renewable energy supply, Alba strengthened its raw material supply chain by renewing a long-term agreement with Alcoa Corporation. Under the terms of the agreement, the latter would supply up to 16.5 million tonnes of smelter-grade alumina to Alba over 10 years commencing in 2026.

Financial and production output

Up till the third quarter of 2024, Alba generated a profit of BD147.5 million (US$392.2 million), up by 55.8 per cent Y-o-Y from BD94.6 million (US$251.7 million) from the same period of 2023. Specifically, in Q3, Alba's profit reflected more than a twofold surge over the year from BD17.3 million (US$46 million) to BD54.5 million (US$145 million).

In nine months, Alba's total comprehensive income was BD145.3 million (US$386.5 million), up by 60.7 per cent Y-o-Y from BD90.5 million (US$240.6 million), while gross profit was BD242.6 million (US$645.2 million) versus BD196.4 million (US$522.3 million) during the corresponding period of the previous year.

Alba's Y-o-Y jump in fiscal results was primarily due to the global aluminium price rally and a growth in sales volume. In nine months, Alba's aluminium sales volume was 1,192,041 tonnes, up by 0.8 per cent Y-o-Y. However, the output volume dipped over the year, reaching 1,212,209 tonnes. Alba's operational excellence also includes exceeding the 2023 net finished production of 1,620,665 tonnes and achieving the e-Al Hassalah 2024 Target of US$60 million

Outlook for Q4 2024 and beyond

Alba's primary focus remained to capitalise on emerging opportunities and to deliver sustainable value to shareholders. It will continue collaborating with various leaderships and forums to enhance its sustainability effort in line with Bahrain's objective of achieving net-zero emissions by 2060.

Alba also aims to become one of the biggest aluminium companies in the world, targeting diverse markets beyond Asia, said Ali Al Baqali, the chief executive officer of Aluminium Bahrain B.S.C. (Alba), in an interview with Mubaseher Info. He asserted, "Our vision is diverse, and we try to reduce the risks through being in different markets."

In the near future, Alba targets to pull 18 to 22 per cent of its sales from the global markets in Asia, the United States, and Europe. Currently, the local market contributes 25 per cent to Alba's sales.