Aluminum rolling mill inks 55 million deal

(MENAFN- Arab News) JEDDAH: Garmco the Bahrain-based international aluminum rolling mill and one of the largest downstream aluminum facilities in the Middle East has announced the signing of a letter of intent with Fives an industrial engineering group and supplier of machines process equipment and production lines for the world's largest industrial companies to build a new state-of-the-art cast house at Garmco's Bahrain based facilities.
The total cost of the project will reach up to $55 million.
The Re-melt Project is an EPC (engineering procurement and construction) Turn-Key project which will enable Garmco to develop its metal recycling capability and lower the cost of metal casting.
The project will run for a duration of around 21 months starting Sept. 2015.
The first stage has already commenced and is being managed internally by Garmco with the support of a local supplier.
This stage consists of the construction of a scrap storage area and segregation unit.
The new project once complete will enable GARMCO to produce 120000 tons of aluminum slabs.
Mahmood Al-Soufi chairman of Garmco said: 'We are delighted to launch this important expansion project in collaboration with Fives. '
He said: 'This facility will have a number of advantages for Garmco. Importantly it will create 50 new jobs further bolstering Garmco's position as one of the most sizable employers in Bahrain and will generate significant cost savings.'
The chairman said: 'This project alongside one or two others forms an integrated part of a three year strategy and will contribute to the profitability and growth of the Company regionally and internationally. We look forward to the commencement of the next phase of work on the project and our continued collaboration with world-class partners as we further build GARMCO's capacity and reach across global markets.'
Jean-Baptiste Lucas CEO of Garmco added: 'With the launch of this Re-melt Expansion project we move the company even further down the path of efficiencyboth in terms of the value and savings that can be extractedbut also in terms of furthering our commitment to sustainable operating and manufacturing practices.'
The CEO said: 'The project once complete will see GARMCO better positioned than ever to deliver high quality competitive products to our customers around the world.'
Garmco is a global exporter of flat rolled aluminum products with a network of subsidiaries and associates companies spanning the Middle East Asia Far East Australia Europe and the US.