Steel plant to create 800 jobs for Bahrainis

MANAMA: A proposed $1.2 billion steel plant earmarked for Bahrain would create 800 jobs for Bahrainis and greatly boost the kingdom’s construction sector, Japan’s ambassador to Bahrain said yesterday.Takeshi Kondo also said the proposed plant could boost the country’s exports by a massive $2bn a year.

“This project will contribute to the economy of Bahrain in several ways. I understand that exports could be as high as $2bn per annum and the number of employees will be 800 - which is not a small number,” he said.

Yesterday GDN reported Japanese firm Yamamoto Steel - a subsidiary of Yamamoto Kogyo - is working on the project with Gulf consortium Foulth which includes Kuwait-based Gulf Investment Corporation.

The plant would aim to meet soaring demand for steel and other building materials around the Gulf.

Mr Kondo said he “was very excited” about the possible project, and said the Japanese firm involved was a household name back in his home country.

“I think it is great Japanese companies are coming into the picture for construction projects in this region. In particular I am very glad about the possibility of investment in Bahrain involving a Japanese company.

“This will be the first major Japanese investment in the manufacturing sector in this country,” he said.

In addition to the boost the project would provide for exports and employment, Mr Kondo said having a steady supply of raw building materials provided by the plant would a great asset to the country’s construction sector.

However, before the project becomes a reality further negotiations must be concluded, he said.

“I am very excited about the possibility of this project and I do hope that negotiations will be concluded successfully. I understand there are some points to be further negotiated so I do not think they are in the final stages of negotiations yet.

“I am hopeful the negotiations will be successful and any problems in implementing the project will be solved,” he said.

Former Japanese politician Mr Kondo comes from a business background and was previously handpicked by former Japanese prime minister Junichiro Koizumi to lead the privatisation of the $15bn firm in charge of Japan’s highways before being appointed ambassador to Bahrain.

“Infrastructure construction is one of my interests. I would like to see more Japanese companies take part in infrastructure projects in Bahrain,” he said at a Press conference held last month to announce his appointment.

Yesterday he said he was currently unaware of any further major deals between Bahrain and Japan but said he hoped the successful implementation of the steel plant project would encourage other firms to engage in future projects.

It has been reported the firms behind the project have approached lenders including the Bahrain-based Arab Banking Corporation to help finance at the project but yesterday a spokeswoman for the firm said they had no comment to make.