Interview: Ali Al Baqali, CEO, Aluminium Bahrain
How do you expect global volatility, interest rate projections and a strong US dollar to impact global aluminium demand over the medium term?
ALI AL BAQALI: The global aluminium market is navigating sluggish demand. Initial optimism from restocking activities has waned as expectations for imminent interest-rate cuts diminish, compounded by inflation and high borrowing costs. Geopolitical tension and freightrate fluctuations, especially disruptions in the Red Sea, also influence demand. Additionally, a resurgence of inflation concerns, fuelled by higher-than-expected US inflation data from January 2024, suggests potential delays in rate cuts – which could hinder significant demand growth. Despite these challenges, the automotive industry remains a critical driver of demand.
In response to these conditions, Alba is maintaining a stance of cautious optimism. We are committed to operating at full capacity and continue to focus on our lean-cost initiatives through our e-Al Hassalah Savings Programme. This approach helps us optimise our cost structure and maintain long-term profitability. By doing so, we aim to take advantage of favourable London Metal Exchange prices and remain resilient.
In what ways is the Power Station 5 (PS5) Block 4 Project expected to enhance operational efficiency in line with Bahrain’s national sustainability goals?
AL BAQALI: The PS5 Block 4 Project enhances operational efficiency by incorporating a 680.9-MW M701JAC gas turbine combined-cycle configuration, which integrates with the existing 220-KV substation. This expansion increases the total capacity of the PS5 Complex to 2481 MW and also introduces substantial environmental benefits, including a reduction of 0.5 tonnes in CO emissions for every tonne of aluminium produced. This project is expected to be completed in the fourth quarter of 2024 and aligns with both Bahrain’s sustainability goals and the national vision for net-zero emissions by 2060. Additionally, the capability of Block 4 to use a mix of hydrogen and natural gas indicates a move towards cleaner power generation, making it a key development in regional sustainable-energy initiatives.
What role do education, training and development play in ensuring safety and workforce adaptability?
AL BAQALI: In the aluminium segment, where the combination of high-risk tasks and intense summer temperatures makes for a challenging work environment, education, training and development are crucial. When employees are well-educated and thoroughly trained, they have a firm grasp of work protocols and are much more effective at spotting risks and managing hazards. This knowledge plays a pivotal role in enabling workers to protect themselves and their colleagues, and also enhances overall work efficiency and morale.
Where do you view the role of major companies in ensuring Bahrain’s aluminium segment has access to a future-ready workforce?
AL BAQALI: The aluminium industry is a cornerstone of Bahrain’s economy, contributing about 12% to GDP. Aluminium is increasingly seen as the metal of the future, which positions the segment for significant growth. Having a future-ready workforce that can handle growing production demands and the shift in technological requirements requires a strategy that includes upskilling and reskilling employees to adapt to new technologies. We are also focusing on integrating sustainable production technologies to align with environmental goals. Harnessing digital technologies and artificial intelligence to enhance operations and investing heavily in research and development will keep Bahrain at the forefront of the aluminium industry. We are strengthening our talent pool through cross-training initiatives and enhancing our internship programmes to bridge the gap between academia and the industry. These efforts are designed to nurture the next generation of leaders in aluminium production.
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