Alabbar inks $1.6bn Malaysia aluminium JV deal
Dubai, April 29, 2011
UAE-based business leader Mohamed Alabbar along with Malaysia's Gulf International Investment Group (GIIG) has entered into a JV deal with Aluminium Corporation of China (Chinalco) to develop a $1.6 billion aluminium smelting plant in Malaysia.
GIIC, headed by Malaysian entrepreneur Tan Sri Syed Mokhtar Al-Bukhary, said the agreement marks a new milestone following the execution of the heads of agreement for the joint venture last February.
The smelter will be located in Samalaju Industrial Industrial Park, about 60 km from Bintulu and some 180 km from the Bakun hydroelectric dam plant in the State of Sarawak, Malaysia.
Samalaju Industrial Park is earmarked by the Sarawak state government for heavy industries under the Sarawak Corridor of Renewable Energy (Score) masterplan.
As per the deal, Smelter Asia will develop, own and operate the private aluminium plant with an annual capacity of 370,000 MT during the first phase. On further availability of power from the grid, the plant capacity is planned to be increased up to 700,000MT.
Alongside the deal signing between GIIG Holdings and Chinalco, the project company, Smelter Asia, also executed the principal terms of the Power Purchase Agreement (PPA) with Syarikat Sesco, the wholly-owned subsidiary of Sarawak Energy Berhad, for over 600 MW of power supply to the proposed aluminium smelting plant.
Smelter Asia and Syarikat Sesco will jointly conclude the PPA by the middle of this year.
Commenting on the aluminium JV, Al-Bukhary said: 'The global demand for aluminium is projected to grow by an average four per cent over the next five years, with Asia driving the demand.'
'Our strategic collaboration with Chinalco for Smelter Asia will bring the best-in-class technology to create a modern aluminium plant that will contribute to the socio-economic growth of Sarawak state,' he noted.
'The plant will create new jobs and drive the growth of supporting industries, thus contributing significantly to the development of the state of Sarawak as well as the Malaysian economy,' Al Bukhary added.
Alabbar said Smelter Asia was a powerful example of global collaborations to create a dynamic socio-economic growth engine for Malaysia.
'The plant will not only benefit the country but also support the Asean region’s development thrust by providing aluminium, which is critical in driving the massive infrastructure projects that are being planned.'
'The final design and construction plans for Smelter Asia are progressing and will be announced in due course,' he stated.
Zhang Chengzhong, deputy general manager said, “Chinalco and its subsidiary Chalco has been working closely with GIIG for the development of Smelter Asia Project over the past years.
'Chinalco will make further efforts to strengthen collaboration with our reliable partner GIIG, adopt smelting technology provided by our engineering company and expedite the construction of the project,' he added.-TradeArabia News Service