ABU DHABI: Emirates Aluminium Rolling (Emiroll), a joint venture between leading Dubai entities and Singapore-based industrial group MARS, is set to build a massive plant in Abu Dhabi at an investment of Dh440 million ($120 million).
The facility will come up on a 900,000 sq ft area in Khalifa Industrial Zone Abu Dhabi (Kizad) amidst surging demand for flat-rolled aluminium products designed for applications in downstream industries across the UAE and GCC countries.
Both MARS and Dubal Holding, a subsidiary of Investment Corporation of Dubai (ICD) with focus on investing in energy, commodities and industrial projects, have a 35 per cent stake in Emiroll, while the other entity Dubai Investments, the leading, diversified investment conglomerate listed on Dubai Financial Market, has the remaining 30 per cent.
The new plant is expected to go on-stream by the third quarter of 2017, said a statement from Emiroll. Once operational, Emiroll will manufacture 65,000 tonnes of aluminium coils per annum, including 45,000 tonnes of cold-rolled and 20,000 tonnes of hot-rolled aluminium for applications in downstream industries, such as automotive body parts, roller-shutters, garage castings, container trays, cans and aerosols, it stated.
GCC currently manufactures 4.5 million tonnes of primary aluminium per annum, of which the UAE’s share is about 2.3 million tonnes and only 10 per cent of this production is used in the downstream industry, it added.
Dubal Holding CEO Abdulnasser Bin Kalban said: “We have kept our focus firmly on a diverse growth strategy, and this joint venture with Dubai Investments and MARS aims at creating new demand for aluminium 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 aluminium sector globally, he added. DI managing director and chief executive Khalid Bin Kalban said: “The foray into the aluminium rolling field is part of our strategy to support the development of non-hydrocarbon sector in the UAE and boost the manufacturing sector’s contribution to the country’s GDP.”
Emiroll, he stated, aims to capitalise on the unmatched market demand for aluminium in downstream industries across the Middle East and is expected to play a major role in this direction. “We already have 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,” stated Kalban.
As part of the joint venture, the Sinagpore-based MARS has also committed 30 per cent 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.
