Investments in aluminium intensifies as GCC targets 150% production increase by 2010

Dubai: The GCC's share of global aluminium production is expected to increase by 150 per cent in 2010 due to significant investments in capacity expansion and ongoing construction of several new aluminium smelters, according to organisers of Aluminium Dubai 2009, a trade show taking place in Dubai next year.

Currently, the Gulf's two operating smelters are Dubai Aluminum (Dubal), which produces about 900,000 tonnes of aluminium a year, and Aluminium Bahrain (Alba), with a capacity of 860,000 tonnes.

Another 11 smelters are either under construction or in the planning stage in the Gulf.

Emirates Aluminium, or Emal, a joint venture between Dubal and Abu Dhabi's Mubadala Development Company, is building a 1.4-million-tonne capacity smelter in Abu Dhabi.

Emal has also launched a similar capacity project in Saudi Arabia, while Saudi mining firm Ma'aden has its own smelter project. In Oman the production at the 350,000-tonne Sohar Aluminium plant is expected to commence this year.

The GCC currently accounts for four percent of current global aluminium production but this share is expected to go up to 10 per cent by 2010, said Amanda Westerman, Group Exhibition Director of Reed Exhibitions Middle East.

"The Gulf's growing focus on economic diversification has boosted demand for aluminium and investments in the sector have increased almost two-fold since 2002 to reach Dh29.3 billion," Westerman said.