Business | General
ADBIC and Midal in aluminium venture
ADBIC and Midal Cables sign joint venture agreement to establish $100m aluminium rod and conductor plant.
- Staff Report
- Published: 23:13 June 28, 2009
Abu Dhabi: Abu Dhabi Basic Industries Corporation (ADBIC) and Bahrain's Midal Cables Limited on Sunday said they have established a $100 million (Dh367 million) aluminium rod and conductor plant during the signing of their joint venture agreement.
The signing serves to reinforce the strategic partnership formed by the companies last year. The joint venture agreement was signed by Jamal Al Dhaheri, senior vice-president for Metals at ADBIC, and Hamid Al Zayani, managing director of Midal Cables.
Construction of the aluminium plant will begin in the first quarter of 2010 at Khalifa Port and Industrial Zone in Taweelah.
The state-of-the-art plant will produce 150,000 tonnes per annum of aluminium products, including aluminium rod and aluminium electrical overhead conductors, to serve as feedstock to further Abu Dhabi's downstream industries as well as to be exported.
Speaking on behalf of ADBIC, Al Dhaheri said, "The establishment of this strategic partnership with Midal will be the first major milestone towards the expansion of Abu Dhabi's downstream manufacturing capacity in the metals sector.
"This partnership brings together the technical expertise of one of the world's largest manufacturers of aluminium rod and conductors with the experience of one of the leading industrial investment and development companies in the region."
Al Zayani went on to add, "This joint venture is strategically important for Midal Cables. The rapid industrial growth in the UAE and [Gulf Cooperation Council] region requires world-class expertise in the field of aluminium production. Working with a leading investment and industrial development company like ADBIC further drives the growth of this key sector."
The establishment of the aluminium plant is the first step towards the development of ADBIC's upcoming metals cluster. Strategically located between Abu Dhabi and Dubai, the cluster will focus on base metals such as aluminium, steel and copper.
ADBIC and Midal Cables also yesterday announced the signing of a Memorandum of Understanding with Emirates Aluminium Company Limited (EMAL) aimed at sourcing molten aluminium, the plant's main feedstock, from their new smelter. By the second quarter of 2011, ADBIC's plant will be ready to receive its first batch of molten aluminium from EMAL.
"EMAL will play a fundamental role in supporting the development of ADBIC's metals cluster," Al Dhaheri said.
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