Bahrain Review

Bahrain Atomisers bottomline ‘better’

A production facility of Bahrain Atomisers and (below) McLaughlin

Bahrain Atomisers, which now only produces aluminium powder having closed its pellets section, is now operating on a sounder basis and showing a better bottom line, its general manager says.

Tim McLaughlin also said high metal prices and changing trends in industry meant there were uncertainties in the New Year.

The company reduced its plants from three to one and downsized its staff after closing its pellets production in mid-2012. The 2013 output of 8,000 tonnes is similar to the 2011 level when both powder and pellets were made. Pellets used to make up 15 per cent of the volume then but the company decided to close that line as it had difficulties receiving the raw metal purity from Alba that it wanted.

“It’s certainly given us a better result; the bottom line is better,” said McLaughlin commenting on the switch to powder-only production.

Profitability was lower in 2013 compared to the previous year as the premium for Alba metal surged 400 per cent, he explained.

Bahrain Atomisers’ customer base comprises mainly the chemical, metallurgical, automotive and refractories segments. In recent years, exports to Europe dipped because of the economic downturn but the company has succeeded in ramping up shipments to the US, which now is its biggest single market with 25 per cent of sales. Europe and India each make up 20 per cent of the company’s exports, Japan accounts for 10 per cent, other Asian states 15 per cent and the remainder is made up by markets including South America and South Africa.

While India has production facilities for aluminium powder and can make it cheaper, Bahrain Atomisers could make inroads there as a “function of powder quality,” said McLaughlin. 

Discussing the Saudi market, the official said Bahrain Atomisers has supplied to a new chemical plant in Jubail but not on a regular basis as it is still in the commissioning stage. There are upcoming chemical plants in the kingdom that may or may not use aluminium powder as an additive for the manufacturing process. The same uncertainty applied to the GCC region in general.

Touching on world markets, McLaughlin said: “Our prospects lie to some extent on a combination of industry rationalisation and just working with our customers to improve our market share or volume.”

Theoretically the company sees sales prospects in all its geographic markets even those that are shrinking. In Japan where the steel industry has declined drastically with a consequent reduction in refractories, there are other segments that are doing well for which Bahrain Atomisers can supply its product, McLaughlin said. Historically refractories have been a big part of demand for the company’s powder. The latest trends have shown an increase in shipments for other segments but it is much lower than the decrease in business from refractories.

It is possible industries in decline could develop niche products that may need aluminium powder, thereby boosting business for companies like Bahrain Atomisers, said McLaughlin.

The outlook for 2014 is unclear as uncertainty prevails, he commented. “Businesses are not willing to make commitments. We’ve got customers who we expect to take more of our product and we have customers who may take less.”

Bahrain Atomisers, owned by Ecka Granules, is the only facility of its kind in the Middle East.