22/03/2016 05:34 AST
A new aluminum rolling plant with a total investment of AED440 million is to be built in the Khalifa Industrial Zone Abu Dhabi (KIZAD), amid surging demand for flat-rolled aluminum products designed for applications in downstream industries across the UAE and GCC countries.
The new plant for Emirates Aluminium Rolling LLC (Emiroll) is expected to go on-stream by the third quarter of 2017.
It is a joint venture between DUBAL Holding (DH), a subsidiary of Investment Corporation of Dubai (ICD) focused on investing in energy, commodities and industrial projects, Dubai Investments (DI) – a leading, diversified investment conglomerate listed on Dubai Financial Market, and MARS, a Singapore-based industrial group.
DUBAL Holding will hold 35 percent stake in Emiroll, Dubai Investments 3 percent stake while MARS will hold the remaining 35 percent stake in the joint venture. Construction of the plant will commence soon on 900,000 square feet of land in KIZAD.
Once operational, Emiroll will manufacture 65,000 tons of aluminum coils per annum, including 45,000 tons of cold-rolled and 20,000 tons of hot-rolled aluminum for applications in downstream industries, such as automotive body parts, roller-shutters, garage castings, container trays, cans and aerosols.
GCC currently manufactures 4.5 million tons of primary aluminum per annum, with UAE’s share about 2.3 million tons per annum, and only 10 percent of this production is used in the downstream industry.
Abdulnasser bin Kalban, CEO of DUBAL Holding, said: “DUBAL Holding has kept its focus firmly on a diverse growth strategy, and this joint venture with Dubai Investments and MARS for Emiroll aims at creating new demand for aluminum in the rapidly-growing downstream industries across the region. DUBAL Holding’s stake in Emiroll is a significant milestone in its growth plans, as it seeks to strengthen its presence in aluminum sector globally.”
Khalid bin Kalban, managing drector and CEO of Dubai Investments, said: “Dubai Investments’ foray into the aluminum rolling is part of its strategy to support the development of non-hydrocarbon sector in the UAE and boost the manufacturing sector’s contribution to the country’s GDP. Emirates Aluminium Rolling aims to capitalize on the unmatched market demand for aluminum in downstream industries across the Middle East and is expected to play a major role in this direction. Dubai Investments already has a strong portfolio in the manufacturing sector, and the launch of Emiroll will further diversify its product base – particularly in the construction materials and related industries.”
As part of the joint venture, MARS has also committed 30 percent product off-take from Emiroll for application and use across its Middle East operations.
The remaining products from Emiroll are expected to be supplied for domestic consumption, as also in other Middle Eastern countries and Europe.
The UAE is the world’s fourth largest aluminum producer and accounts for over 50 percent of the Gulf’s aluminum production and continues to strengthen its share in the global market.
The worldwide demand for aluminum is expected to grow at an average of 6.5 percent annually, according to industry statistics.
Arab News
Please wait...
