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HomePR This WeekConexus Resources Group Opens $100M Aluminum Plant in Bahrain

Conexus Resources Group Opens $100M Aluminum Plant in Bahrain

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Conexus Resources Group, the UK-headquartered pioneer of innovative solutions in the metals and agricultural commodities sectors operating in 15 countries across the world including Switzerland and Singapore, announced today the inauguration of its flagship aluminium rod plant in Bahrain, Konexus Aluminium. The new facility affirms Bahrain’s standing as a leading destination for manufacturing and export hub to international markets. With an investment value above USD 100 million, the state-of-the-art 32,000 metric tonnes per annum facility will leverage the Group’s combined expertise in cutting-edge processing and logistical capabilities in managing global value chains to process liquid aluminium from Bahrain’s national manufacturer, Alba, into high-quality aluminium rods, serving regional and international clients.

Currently the second largest non-oil contributor to real GDP standing at 13.9% as of 2023, Bahrain’s manufacturing sector has maintained a healthy pipeline of national and international companies which includes Alba, the largest single-site smelter outside of China producing more than 2% of the world’s aluminium output, offering manufacturing companies investment-ready land for aluminium downstream projects. The sector remains a point of focus as one of the five priority non-oil sectors outlined by the national Economic Recovery Plan.

Dr. Khaled Fahad Alalawi, Assistant Undersecretary for Industrial Development at the Ministry of Industry and Commerce, remarked, “This inauguration marks yet another milestone achievement that stands as a testament to Bahrain’s thriving manufacturing sector, where Bahrain continues to provide companies with an ideal gateway to tap into the Middle East market and beyond.”

He continued, “Over the past 18 months, Conexus Resources have made remarkable progress in establishing their rod plant facility, owing to the collaborative efforts of Team Bahrain as well as Alba. This initiative is a giant stride for the local manufacturing sector and is furthered by a larger strategic plan that will see the development of the Kingdom’s aluminium downstream park, further placing Bahrain at the forefront of aluminium manufacturing on regional and global levels.”

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Manufacturing companies operating in Bahrain benefit from a business-friendly environment, a favourable tax regime, with 100% foreign ownership enabled across most sectors, and expert insights backed by a diverse portfolio of aluminium manufacturing companies that effectively complement downstream clustering. Export-focused firms gain streamlined connectivity to international markets with advanced air and sea freight connectivity and direct access to the Kingdom of Saudi Arabia via the King Fahad Causeway.

Brijender Pal Singh, Chief Executive Officer of Conexus Resources Group, added, “We are pleased to officially go-live with production at our newly constructed and inaugurated state-of-the-art aluminium rod plant in Bahrain. Konexus aims to provide high-quality aluminium rods to global industrial uses, and Bahrain was a clear destination of choice given the availability of experienced and highly skilled local talent, duty-free trade advantage and strategic location that offers direct access to one of the fastest growing markets in the world.”

Ali AlMudaifa, Chief of Business Development at Bahrain Economic Development Board, said, “Beyond its strategic location and free trade agreements covering 22 countries,

Bahrain provides investors the best value manufacturing operational costs in the region with unparalleled export efficiencies owing to a world-class logistics zone, providing fertile ground for companies looking to set up and expand across the region – the Konexus Aluminium plant is a welcome addition to Bahrain’s thriving aluminium industry, adding-value with their niche experience and capabilities.”

In line with the sustainable development goals outlined in the national Economic Recovery Plan (ERP), Bahrain has continued to strategically develop its non-oil priority sectors to sustain national economic growth and diversification. As part of the ERP, the Industrial Sector Strategy (2021-2026) set out a roadmap to further elevate the Kingdom’s manufacturing sector, which includes the recently launched US Trade Zone, and the development of the Aluminium Downstream Park. Situated near the Alba factory, the Park aims to further develop Bahrain’s logistics sector by providing the necessary infrastructure to establish a downstream zone for the aluminium sector to attract local and foreign investment.

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