Gulf's aluminium smelters set to fill global supply gap

Dubai: Aluminium smelters being built in the Gulf are eyeing markets in Europe as that region will see the phasing out of some of its capacity and Asia's appetite for aluminium is expanding, industry executives said.

Global demand for primary aluminium is rising about four per cent per year, but the supply gap will widen over the next few years as some smelters in Europe, China and North America will shut down due rising energy costs.

"We expect aluminium production in the Gulf will be 4.5 million tonnes within five years," Dubai Aluminium (Dubal) chief executive officer Abdullah Kalban told Gulf News.

Dubal's current production capacity of 861,000 tonnes per annum is expected to reach 920,000 tonnes by 2009.