Abu Dhabi plans to set up second aluminum plant

Khaleej Times reported that Abu Dhabi is planning to build an aluminum plant in Khalifa Industrial Zone.

Mr Jamal Al Dhaheri CEO of Abu Dhabi Basic Industries Corporation which is part of Abu Dhabi’s industrial arm General Holding Company expected to make public details on the new joint venture facility in two weeks.

In November 2007 the company hinted to setup a 550,000 tonne capacity smelter in collaboration with a leading industry leader. Taking part in a panel discussion on Diversification: Defining Abu Dhabi’s economic outlook at the 4th UAE Global Investment Forum, the chief executive ADBIC said that industry will contribute 25% to the emirate’s gross domestic product in 2030.

Abu Dhabi Ports Company, which is building the Khalifa Industrial Zone or KIZAD in Taweelah, said it will establish a cluster for Aluminum’s downstream industries at the zone in next 5 years to 10 years.

Mr Khaled Salmeen executive VP of Industrial zone at ADPC told investors that the company will spend AED 8 billion to develop the industrial zone being built in Taweelah area this year. The Phase I will be ready in the Q4 of 2012 and will account for 15% of the emirate’s non oil economy within 20 years.

Mr Khaled Salmeen said that Abu Dhabi Ports expects to announce this month the first company to set up in the zone. The unnamed company, a public private JV aluminum project will invest AED 715 million in the zone. The total cost of the Phase I is AED 26.4 billion and will be ready in the Q4 of 2012.

Mr Fahad Al Raqbani DG of Abu Dhabi Council for Economic Development said that Abu Dhabi’s industrial landscape has rapidly changed in the recent year as its major steel plant has doubled its output with further capacity increases plans underway while an Aluminum smelter, one of the largest in the world has recently gone into commercial production.

He said that Abu Dhabi is not competing with Dubai, as both are complimentary to each other. If something happens in Dubai it effects Abu Dhabi and something happens here affects Dubai. Meanwhile, Abu Dhabi Ports will visit Mumbai, India and Seoul in South Korea this month to attract investment into the industrial zone.