Alba Maintains 1.3 Million Tonnes Production Amid Regional Disruptions

Aluminium Bahrain, known as Alba, is currently producing aluminium at an annualized rate of approximately 1.3 million tonnes. According to CEO Ali Al Baqali, the smelter is operating at roughly 80 percent of its pre-conflict capacity of 1.6 million tonnes per year. This output level represents a partial recovery following production curtailments necessitated by the outbreak of war and subsequent restrictions on the Strait of Hormuz, which previously impeded export channels.

The company has managed to maintain operations despite a physical strike by Iranian forces in late March. Al Baqali characterized the resulting damage as minor, noting that repairs have already been completed. He confirmed that Alba’s financial losses from the incident are fully covered by insurance, allowing the business to continue its operational focus without significant capital distraction from the repair and compensation processes.

Logistics Overhaul Drives Current Output

Sustaining the current production volume has required a substantial logistical adjustment. Alba is now receiving between 300 and 350 truckloads of alumina daily, totaling approximately 7,000 tonnes of raw material per day. This shift to overland transport for feedstock is a direct response to the disruption of traditional maritime trade routes in the region, ensuring a consistent supply chain for Lines 4, 5, and 6.

While the logistics operation is described as expensive, the additional costs are being mitigated by favorable market conditions. Higher prices on the London Metal Exchange and increased physical metal premiums are helping to offset the elevated transportation expenses. This financial dynamic allows the company to remain profitable despite the increased complexity of moving both raw materials into the smelter and finished metal out.

Export Routes Shift to Red Sea

With traditional Gulf shipping lanes disrupted by ongoing hostilities, Alba has redirected its export strategy. The company is now shipping aluminium through Jeddah port in Saudi Arabia and Sohar in Oman. This routing bypasses the most volatile sections of the Persian Gulf, providing a more secure pathway for delivering finished metal to global markets despite the broader regional uncertainty affecting Gulf producers.

Capacity Expansion Through Dunkerque Acquisition

Looking ahead, Alba expects its overall capacity to return to the 1.6 million tonnes per year mark once it completes its acquisition of the French smelter Aluminium Dunkerque. Al Baqali indicated that this transaction is expected to close within the next couple of months. This expansion will supplement the Bahrain-based production lines, which currently operate at 1.3 million tonnes, thereby restoring the company’s total potential output to pre-disruption levels.