MANAMA: Bahrain-based Capivest will set up a $1 billion company that will build the first-of-its kind magnesium smelter meeting international environmental standards in the Middle East and North Africa (MENA) region.
Capivest, an investment bank, said in a statement yesterday that the feasibility studies had already been completed to construct and operate this world-class magnesium smelter in the MENA region, with an initial production capacity of 30,000 to 60,000 tons per year. A location is expected to be identified later.
In this regard, the bank said that it signed an agreement representing a strategic alliance with TRU Group — an international technical advisory team with extensive experience in engineering, planning and managing technology intensive industrial projects — to oversee the technical and engineering arm of the company.
The project also entails future plans to build multiple environmentally friendly magnesium smelters in different locations, which will provide another steady income stream for the MENA region.
The magnesium alloy market continues to show strong signs of growth, with auto manufacturers in particular seeking lightweight yet durable solutions that comply with increasingly stringent environmental standards.