Gulf aluminium industry poised to become a primary production powerhouse

Khaleej Times reported that the Gulf aluminium industry is poised to become a primary production powerhouse of the metal following USD 55 billion investment in new smelters and existing projects to boost the output capacity.

According to major industry players, the UAE remains on front with USD 22 billion investment in its aluminium industry followed by Saudi Arabia, Kuwait and Qatar.

They said that four of the top 10 primary aluminium producers in the world will be from the Gulf region and they will be accounting for about 15% of the total world production by 2014.

Major groups in Saudi Arabia and UAE are executing multi billion dollars projects that will increase aluminium output from 3 million tonnes to 5 million tonnes by next year. Saudi Arabia’s USD 10.8 billion Maaden project and the USD 4.5 billion phase II expansion of Emirates Aluminium will impetus the growth in the region’s industry.

Mr Saeed Fadhel Al Mazrooei president and CEO of Emal said that “The Big Five Gulf smelters Alba, Dubal, Emal, Sohar and Qatalum recorded significant developments and achievements in recent past. With 3.6 million tonnes of aluminium produced in 2011, Gulf production is expected to increase to 5 million tonnes by the end of 2014, upon completion of Emal phase two expansion and other Gulf smelter projects.”

He said that almost 80% of the aluminium produced in the Gulf is exported to different parts of the world, firmly placing the Gulf in a prominent position to meet both local and global demand.

Frost & Sullivan said that aluminium production in the GCC is expected to grow significantly in the short to medium term. The region is expected to contribute around 15% of the total global production of aluminium by 2015. The UAE aluminium capacity is expanding further with Emal’s second phase expansion plans to raise its total annual output to 1.3 million metric tonnes. Frost & Sullivan expects this to drive the growth of exports in the near future.

Aluminium exports from the UAE had shown YoY increase of 102% in the H1 of 2012. Aluminium exports are expected to be robust in the future as well thereby becoming one of the key non oil industry sector in the UAE. A number of new aluminium smelters and manufacturing companies were established in Saudi Arabia, UAE and other countries to drive growth and establish the region as a major player in the global aluminium industry.