Mumtalakat Synergies Castings to build aluminum plant
(MENAFN- Arab News) DUBAI: Mumtalakat and India's Synergies Castings will build a $150 million downstream aluminum facility in Bahrain the chief executive of the kingdom's sovereign fund said.
The aluminum casting and specialty alloy wheel manufacturing plant will take around 18 months to build and is expected to open in late-2017 said Mahmood Al-Kooheji.
'There is a secure channel for the products as they have the customer demand which will make it very easy to make profits' said Al-Kooheji adding that the joint venture was the first outside India for Synergies Castings which supplies alloy wheels to car companies including General Motors Ford and Toyota.
It will have an annual production capacity of around 25000 metric tons equivalent to around 2 million wheel alloys Al-Kooheji said.
The joint venture is split 51/49 percent between Synergies Castings and Mumtalakat with the latter helping to secure loans from Bahraini banks to finance its construction.
Al-Kooheji said the amount of cash to be raised from banks would be determined later but both partners had pledged enough money to complete the plant without it.
Mumtalakat has been making a number of moves to develop Bahrain's downstream aluminum industry. The fund's head of industries and services said earlier this week that it was close to buying 49 percent of Spanish aluminum products group Aleastur.
The fund owns the kingdom's stake in Aluminium Bahrain which is currently expanding production capacity of the metal to 1.45 million tons per annum.
Al-Kooheji said it was working on a number of deals to boost the downstream sector to absorb that increase in supply.
The aluminum casting and specialty alloy wheel manufacturing plant will take around 18 months to build and is expected to open in late-2017 said Mahmood Al-Kooheji.
'There is a secure channel for the products as they have the customer demand which will make it very easy to make profits' said Al-Kooheji adding that the joint venture was the first outside India for Synergies Castings which supplies alloy wheels to car companies including General Motors Ford and Toyota.
It will have an annual production capacity of around 25000 metric tons equivalent to around 2 million wheel alloys Al-Kooheji said.
The joint venture is split 51/49 percent between Synergies Castings and Mumtalakat with the latter helping to secure loans from Bahraini banks to finance its construction.
Al-Kooheji said the amount of cash to be raised from banks would be determined later but both partners had pledged enough money to complete the plant without it.
Mumtalakat has been making a number of moves to develop Bahrain's downstream aluminum industry. The fund's head of industries and services said earlier this week that it was close to buying 49 percent of Spanish aluminum products group Aleastur.
The fund owns the kingdom's stake in Aluminium Bahrain which is currently expanding production capacity of the metal to 1.45 million tons per annum.
Al-Kooheji said it was working on a number of deals to boost the downstream sector to absorb that increase in supply.
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