Benefits of Local Manufacturing

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Benefits of Local Manufacturing January 2016 1

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing The Speaker Hamid Al Zayani Managing Director Midal Cables Limited, Kingdom of Bahrain email: hrz@alzayani.com website: www.midalcable.com 2

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing The Speaker Hamid Al Zayani Founder & Partner Al Zayani Investment Group, Kingdom of Bahrain email: hrz@alzayani.com website: www.alzayani.com 3

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing The Speaker Hamid Al Zayani President Arab Cable Manufacturers Association www.arabcab.org 4

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing The Speaker Hamid Al Zayani Vice Chairman Arab Federation for Engineering Industries www.arab-fei.com 5

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing The Speaker Hamid Al Zayani Board Member International Cablemakers Federation email: hrz@alzayani.com website: www.midalcable.com 6

Introduction to Midal Group 7

MIDAL CABLES LIMITED History of Midal Cables 1977-78 Second-hand factory in the middle of the desert 8

MIDAL CABLES LIMITED 2016 Corporate Office (Bahrain) 9

Midal Group Companies Midal Cable Division Midal Wheel Division Midal Support Division Bahrain Bahrain Bahrain Bahrain Wooden Drums (Bahrain) Bahrain Saudi Arabia Tunaverken Sweden Turkey Mozambique Sweden Steel Drums (Turkey) Australia Bahrain 10 ROD WIRE CONDUCTOR Alloy Wheels (Bahrain) Steel Drums (Oman / KSA) Groups Aluminium Processing Installed Capacity of 435,000 MT p.a.

MIDAL GROUP OF COMPANIES MIDAL CABLES LIMITED, Bahrain (Since 1977) Rolling Mill ROD Wire Drawing WIRE Stranding CONDUCTOR 11

MIDAL GROUP OF COMPANIES ISO 9001:2000 ISO 14001:2004 OHSAS 18001:2007 Qualified Since: 1993 Qualified Since: 1999 Qualified Since: 2005 12

MIDAL GROUP OF COMPANIES ISO/IEC 17025:2005 Qualified on: April 2014 13

MIDAL GROUP OF COMPANIES Our growing International Markets CANADA Quebec USA Georgia Texas Mexico Guatemala Honduras Columbia Ecuador Peru Brazil Chile Uruguay Argentina EUROPE Austria Belgium Cyprus France Finland Germany Iceland Italy Portugal Norway Netherlands Spain Sweden Switzerland UK Turkey AFRICA ASIA MIDDLE EAST Japan Hong Kong India Indonesia Saudi Arabia Korea Sri Lanka Bahrain Nepal Singapore Jordan Pakistan Bangladesh Iran Taiwan Philippines Kuwait Malaysia Kazakhstan Lebanon China Qatar U.A.E. Yemen Sudan Libya Egypt Zimbabwe Ethiopia Ghana Kenya Malawi Morocco Mozambique Namibia Nigeria Senegal Tanzania Tunisia Uganda South Africa Australia & New Zealand 14

MIDAL GROUP OF COMPANIES Some of the Projects in Africa Supplied by MIDAL Cables Supply Countries Quantity in Kilometers Algeria 10,738 Angola 139 Egypt 3,131 Eritrea 177 Ethiopia 1,810 Ghana 2,444 Ivory Coast 46 Kenya 1,829 Liberia 118 Libya 68,568 Malawi 1,077 Morocco 11,207 Mozambique 5,544 Namibia 1,593 Nigeria 346 Senegal 619 South Africa 3,977 Tanzania 3,260 Tunisia 12,130 Uganda 113 Zambia 1,784 TOTAL 130,650 15

MIDAL GROUP OF COMPANIES Midal International Offices & Agents Canada UK Korea India Nigeria Kenya Malaysia Agents International Offices New Zealand 1 7 Head Office Bahrain Midal Kablo (Turkey) Midal Saudi Midal Mozambique Midal Australia 16

MIDAL GROUP OF COMPANIES Market Penetration 1 7 Head Office Bahrain Midal Kablo (Turkey) Midal Saudi Midal Mozambique Midal Australia 17

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Midal Cables have a 39 year long history of successfully supplying to its customers spread around the globe In its 39 years journey Midal have realized the benefits of local manufacturing Access to local & reginal market Shorter transit time /closer to our customers Easy access to quality raw material Supporting local manufacturing concept, Midal have set-up manufacturing facilities in Turkey, Australia, Saudi Arabia & Mozambique 18

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Some of the benefits of Local Manufacturing in Africa are: Lower Cost of Manpower Closer to customers Access to regional markets Abundant Resources (such as: Mozambique's natural gas reserves) Trade Agreements and other duty free and quota-free access to US and EU markets 19

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Promoting local manufacturing in Africa, Midal Cables took initiative and in 2014, set-up a stateof-the-art rod and conductor manufacturing facility in Mozambique Production Capacity 50,000 MT p.a. Investment of over USD 47 Million Direct job creation of over a 110 headcount Our Mozambique factory is equipped with the most advanced machinery and equipment within our group 20

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Mozambique, Maputo 21

Midal Cables Limitada Mozambique (Since 2014) 22

Midal Cables Limitada Mozambique Inauguration Ceremony 23

Midal Cables Limitada Mozambique (Since 2014) ISO 9001:2000 ISO 14001:2004 OHSAS 18001:2007 24

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Record of Midal Mozambique Supply of Conductor PROJECT Restoration of the 220 KV transmission line section devastated by floods at Mocaba in Zambezia province 8 EDM Mozambique SUPPLY COUNTRY MOZAMBIQUE ESCOM SOUTH AFRICA Cahora Bassa 533kV HVDC Overhead Line Strengthening River Crossings: Limpopo, Nuanetse and Save Rivers Tender No. HCB/TGC/TAP2014 0110 MOZAMBIQUE EDM Mozambique MOZAMBIQUE 25

Midal Group Companies Midal Cables Limitada Mozambique (Since 2014) Mission of Midal Mozambique Supplying to the existing African grid Preparing itself for the proposed / upcoming grid and inter-connections 26

Power Grid Interconnection in AFRICA Proposed & Existing Map Source: Global Energy Network Institute, (n.d). 27

Electricity Grid of the Gulf Countries Midal supplied to the GCC Interconnection Route & Layout of the GCC Interconnection 28

Electricity Grid of the Gulf Countries Gulf Cooperation (GCC) Power Grid Interconnection 29

Power Grid Interconnection Looking Beyond GCC 30

Power Grid Interconnection Looking Beyond GCC Interconnecting the Grids Horizontally and taking advantage of time zone 31

Power Grid Interconnection Looking Beyond GCC Interconnecting the Grids VERTICALLY and taking advantage of SEASONS 32

Powering AFRICA 2 nd Annual Summit 2016 Benefits of Local Manufacturing Challenges Available Infrastructure and its development Power failures Expensive logistics within African continent Manpower Skill development institutes & centers 33

Midal Group Companies Midal Cables Limitada Mozambique (Since 2014) African power & electricity industry have mainly been operated on turnkey basis between packages of financing from foreign institutes; foreign construction companies and at times even the implementing workforce are not from local sources. We look forward to a development in the continent whereby the electric authorities and the grid companies are resourceful to bid each line/complete project rather than take turn key packages 34

Midal Group Companies Midal Cables Limitada Mozambique (Since 2014) Social Responsibilities Training programs Charitable projects Community work 35

Midal Group Companies Vision of Midal Africa Midal would be looking for setting up manufacturing facilities in: West Africa (viz. Ghana / Nigeria / Cameroon) North Africa (viz. Egypt) 36

Midal Group committed to February 2015 37

Thank You February 2015 38