Aluminum Rolling Mill Essay

1.0 Introduction

Established in the year 1980 as a joint venture between many countries in the Gulf, Gulf Aluminum Rolling Mill (GARMCO), the Bahrain Based Aluminum Mill located in Sitra Industrial Area, is considered to be one of the largest aluminum rolling mills in the Middle East for cutting, fabricating and rolling aluminum (“Welcome to Garmco,n.d.).According to GARMCO CEO Mr. Jean Baptise Lucas, The Company has a number of shareholders, the largest being Bahrain Mumtalakat Holding Company. The others areSaudi Basic Industries Cooperation, Industrial Bank of Kuwait, Omani, Iraqi and Qatari shareholders (2003). These shareholders are also considered as stakeholders, along with the Government, employees, customers, and suppliers.

With 36 years of existence,GARMCO has approximately 600 Employees in Bahrain and 150 employees overseas, as it has presence in a number of countries around the globe such as Thailand, Australia and Singapore as well as having a logistics office in North America, thus, operating at a national and international level. The company is owned by the Government, and has an annual turnover of $400 million, which also increases

Paul Sullivan (2013) stated that 85% of Bahraini government revenue is from oil and natural gas, meaning that they highly depend on oil and gas. The demand for natural gas rises despite the limited gas production locally, thus, will make the national oil and gas authority raise the price of gas. Aluminum industry is heavily dependent on gas, as they use it to operate machinery used in the manufacture to produce aluminum. Referring to Mr. Lucas the CEO of GARMCO, increase in prices of gas will have a major adverse impact on them. This may be because they may have to purchase raw materials at higher prices from Alba as Alba’s operations and selling prices are affected by the increased prices of gas. This will cause rise in GARMCOs