¡°At present, the Gulf region is considered as the Aluminium hub of the world¡±: Tim Murray, CEO, Alba.

AlCircle recently had an opportunity to interview Mr. Murray, the CEO of Alba. Aluminium Bahrain has been consistently ranked as one of the largest aluminium smelters in the world and is known for its technological strength and high quality aluminium along with its strict safety & environmental benchmarks.

Mr. Murray joined Alba in 2007 as General Manager Finance & Legal and in July 2009, he was promoted to Chief Finance Officer. Since, October 2012, Mr. Murray has been serving as the Chief Executive Officer of Alba. He is a Certified Public Accountant and a member of AICPA and has completed various Executive Management Programs at the University Of Chicago Graduate School Of Business. He has completed various Executive Management Programs at the University Of Chicago Graduate School Of Business.

Mr. Murray discussed with AlCircle Alba’s future projects and expansions and his views on future prospect of the aluminium industry in Gulf.

Excerpts from the interview:

AlCircle: Could you tell us in brief about the new projects and expansions that are coming up in Alba?

Mr. Murray: Alba’s position as one of the world’s largest single site aluminium smelters will be strengthened further with the Line 6 expansion project.

Bechtel Canada was awarded a Letter of Intent in December 2012 to perform the Bankable Feasibility Study (BFS) for the Line 6 expansion project, which is expected to be completed within the first half of 2014. Dubal DX+ Technology will be used as the basis for this study.

The CAPEX requirement for the Line 6 expansion project is not less than USD 2.5 to 3 billion as per the pre-feasibility study. Upon its completion, the project is expected to add 400,000 tonnes to Alba’s current production capacity of 912,700 tonnes, bringing the total annual production to around 1.3 million tonnes.

AlCircle: We have been going through reports of record breaking production and sales in Alba. Could you update us in brief about the fourth quarter and full-year 2013 results of Alba?

Mr. Murray: Alba’s sales for the full-year of 2013 were US$ 1.993 billion (BD 749.3 million) versus US$ 1.978 billion (BD 743.7 million) in 2012. As for the fourth quarter of 2013, Alba’s sales totaled USD 488 million (BD 183.4 million) versus USD$ 502 million (BD 188.8 million) in Q4 2012, down by 3% on the back of lower LME prices. Alba was able to maintain its sales in dollar figures despite an 8% dip in the LME prices.

AlCircle: Tell us something about safety in primary aluminium smelting industry that Alba is promoting pro-actively.

Mr. Murray: At Alba, safety is of utmost priority, both at work and off work. Our operations are guided by the commitment to stringent safety standards and we work proactively to ensure that safety does not remain merely a regulatory requirement but is embedded in our work culture. This has a direct impact on the overall production as employees are motivated to work when they feel they are valued by the organization and that in turn boosts the company’s bottom line performance.

There have been numerous initiatives/campaigns held throughout 2013 that provided a further push towards achieving Alba’s safety goals – Zero Accident Principle Week, Keep the Safety Momentum Alive, Safety Review, HSE Week, Safety Observations, amongst others.

AlCircle: In your view, what is the future prospect for the aluminium industry in Gulf? Do you think aluminium can diversify national development beyond oil and gas?

Mr. Murray: At present, the Gulf region is considered as the Aluminium hub of the world. With six big smelters – Dubal and Emal (now Emirates global Aluminum), Alba, Qatalum, Sohar and Ma’aden - the Gulf is well positioned to represent 15% of the world’s total aluminium production by 2015.

Aluminium and gas are closely linked as the latter is the most important element required to fire-up the power stations. A combination of low cost fuel, which is subsidised by the government and an ideal geographic location to supply to the various markets as well as import raw materials, has helped to boost the production of primary aluminium in the GCC.

Having said that, Bahrain has a very well-developed downstream industry, where aluminium exports represent 65% of the country’s non-oil exports. To that extent, we can say that the aluminium industry’s contribution to Bahrain economy is quite substantial.

AlCircle: What is your outlook for the aluminium industry from the perspective of the present recessionary condition in the market?

Mr. Murray: Alba expects LME to hover around USD 1650 - 1750 (as per CRU analysis) in 2014.

AlCircle: Which geographic regions or countries do you think would contribute the most in boosting aluminium demand in near future?

Mr. Murray: In my view, primary aluminium consumption demand will improve in North America, China and Western Europe.

AlCircle: Which industrial sector (automotive, construction, transport, packaging electrical etc.) do you think has the potential to boost the demand for aluminium?

Mr. Murray: Key sectors that are expected to see a positive growth include automotive body sheets, packaging sectors as well as aerospace production.

AlCircle: As E-Commerce has caught on in a big way in the consumer sector; do you think e-commerce and online promotion can work well in the aluminium sector?

Mr. Murray: In the aluminium industry, E-commerce can be used as a platform to provide a business-to-consumer-like experience such as offering recommendations and best product practices; however, you will find its use slow.

We believe that e-commerce and social media channels are used well for end-to-end products and more restricted in use when it comes to smelting companies (B-to-B), as most products are sold directly to the companies involved in production of aluminium goods.

Currently, it is a mix of traditional media and online media, with the former having the higher advantage. E-commerce, in the future, can be expected to grow and develop many avenues for smelting industries to offer their products and services.

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