Adbic, Midal to set up $100m aluminium plant
Abu Dhabi, June 28, 2009
Abu Dhabi Basic Industries Corporation (Adbic) and Bahrain’s Midal Cables have entered into a joint venture agreement to establish a $100 million aluminum rod and conductor plant in Abu Dhabi.
The agreement was signed by Jamal Al Dhaheri, senior vice president for Metals at Adbic and Hamid Al Zayani, managing director of Midal Cables. The signing serves to reinforce the strategic partnership formed by the companies last year.
The construction of the aluminum 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 tons per annum of aluminum products, including aluminum rod and aluminum electrical overhead conductors, to serve as feedstock to further Abu Dhabi’s downstream industries and to be exported internationally.
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 aluminum rod and conductors with the experience of one of the leading industrial investment and development companies in the region,' he observed.
Al Zayani pointed out that the joint venture was strategically important for Midal Cables.
'The rapid industrial growth in the UAE and GCC region requires world-class expertise in the field of aluminum production. Working with a leading investment and industrial development company like Adbic further drives the growth of this key sector,' he noted.
The establishment of the aluminum plant is the first step towards the development of Adbic’s upcoming metals cluster, which will play a fundamental role in expanding Abu Dhabi’s downstream manufacturing capacity in the metals sector.
Strategically located between Abu Dhabi and Dubai, the cluster will focus on base metals such as aluminum, steel and copper.
Adbic and Midal Cables also announced the signing of a MoU with Emirates Aluminium Company Limited (Emal) aimed at sourcing molten aluminum, 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 aluminum from Emal.
“Emal will play a fundamental role in supporting the development of Adbic’s metals cluster,” said Al Dhaheri.
“This partnership not only helps to drive Adbic’s contribution to Abu Dhabi’s industrial diversification, but also leverages Emal’s planned aluminum upstream production capacity, which will commence at 700,000 tons per annum in the first quarter of 2010,” he added.-TradeArabia News Service