Bahrain's Alba picks Bechtel for $2.5 billion expansion feasibility

DUBAI Thu Dec 13, 2012 8:02am EST

Related Topics

DUBAI (Reuters) - Aluminum Bahrain ALBH.BH, which owns the world's fourth-largest aluminum smelter, said on Thursday it hired Bechtel Canada to conduct the feasibility study for its proposed $2.5 billion expansion plan to add a sixth production line.

Alba has said previously the new line - which will add 400,000 tonnes annual capacity to its current production of 881,000 tonnes a year - could be completed by early 2015.

The feasibility study will evaluate the economics of building Line 6 as well as a fifth power station at the site, a statement to Bahrain's stock exchange said. The study is expected to be completed by the third quarter of 2013.

In July, Alba named BNP Paribas (BNPP.PA) as the financial adviser to the project.

Alba's last major expansion took place in 2005 when it added a fifth potline at a cost of $1.7 billion. Bechtel was involved in that project as the engineering, procurement and construction management contractor.

(Reporting by David French; Editing by Praveen Menon)

FILED UNDER: