GARMCO, the Bahrain-based international aluminium rolling mill and one of the largest downstream aluminium facilities in the Middle East, announced the completion of a major restructuring of its international operations.
This is in line with the Company’s three-year strategy, which involves closing unprofitable subsidiaries and non-operating companies; and identifying additional opportunities for growth in high-margin markets where GARMCO has established a strong presence, in particular South East Asia, the USA and Australia.
The restructuring has resulted in the closing of unprofitable subsidiaries in the saturated markets of China and Korea; and non-operating companies in Hungary and Cyprus, which do not add value to GARMCO’s core activities.
GARMCO USA continues to perform strongly, with sales having increased by over 20 per cent during the past year. This is due to concerted sales and marketing activities, and the positive momentum of the US economy.
Supported by a strong management team and successful business model, GARMCO has established a dominant market share in Australia. The subsidiary recently signed up a major new customer – LicenSys – which is the leading manufacturer of high-quality, difficult-to-clone, embossed retro-reflective aluminium vehicle licence plates in Australasia and the Pacific region.
GARMCO has developed into the leading supplier of aluminium products in Singapore. This subsidiary serves the home markets of Singapore and Malaysia, as well as neighbouring countries such as Brunei, Taiwan and Indonesia. The subsidiary has also developed fast-growing operations in Thailand and Suzhou, China; while a long-standing relationship with Mitsui & Company provides the subsidiary with valuable insight into potential Japanese customers in the Far East. In addition, GARMCO Singapore recently established a new subsidiary in Vietnam, which is one of the fastest growing economies in South East Asia, especially in the field of electronics.
As part of the restructuring exercise, both the Chairman of GARMCO – Mr. Mahmood Al Soufi, and the CEO – Mr. Jean-Baptiste Lucas, now sit on the Boards of Directors of the subsidiaries in Australia, Singapore and the USA. This will help ensure greater synergy between the head office in Bahrain and overseas operations, and faster implementation of GARMCO’s strategic objectives and business goals.
Commenting on the restructuring exercise, Mr. Mahmood Al Soufi said: “These proactive developments illustrate the successful implementation of the Group’s strategy to consolidate and expand its international operations. The closure of unprofitable subsidiaries and non-operating companies will enable GARMCO to focus on existing high-margin markets where it has established a strong operating presence and loyal client base; and to identify attractive new markets where there is a growing demand for the highest-quality rolled aluminium.”
According to Mr. Jean-Baptiste Lucas: “As a result of the major restructuring of international operations, GARMCO is now a leaner, more efficient and strategically-focused organisation, with a growing foothold in key markets that offer excellent opportunities for higher profitability and expansion. I would like to thank the Group’s 200 employees outside Bahrain for their hard work and dedication, and their commitment to realising GARMCO’s huge potential for growth around the world.”