Dubal eyes Europe as a strategic growth market

So says Walid Al Attar (GM: Marketing & Sales), explaining that the demand for aluminium in Europe, estimated at about 6 million mtpa, far exceeds the region's own production capacity of 3 million mtpa, resulting in a net shortage of metal units that is currently satisfied through metal imports of approximately 3 million mtpa.

He adds that the import volumes are likely to grow in the foreseeable future, reflecting a combination of ever-increasing consumption levels and the probable shut-down of smelters in Europe due to higher energy prices and environmental concerns.

'Europe is an important part of Dubal's future growth strategy, which includes significant growth in our annual production volumes through lateral investment and involvement in green-field smelter developments in the MENA region,' adds Al Attar. 'Through our joint venture relationship with Mubadala Development, known as EMAL International, we have already announced three such projects in Abu Dhabi, Algeria and Saudi Arabia respectively. Europe is a critical market for the sale of the additional metal yield from these smelters, especially as there are many logistics and cost benefits to end-users on the continent'.

To leverage these opportunities, Dubal will participate in the 7th Metef International Aluminium Exhibition ('Metef 2008'), which takes place at the Garda Exhibition Centre, Brescia, Italy from 9 to 12 April 2008.

The event, which coincides with Foundeq Europe, has trebled in size since its inception in 1997 and offers a platform for Dubal to liaise with its more than 40 existing customers in Europe as well as to network with other exhibitors and potential customers.

Accordingly, a team of senior Dubal officials will be present to interact with delegates and participants during the exhibition. The Dubal brand values will be showcased, alongside the company's services and products.

'In terms of geographic and economic perspectives, Dubal is ideally located to serve Europe,' says Sultan Al Sabri (Senior Marketing Manager: Europe and US). 'We have been active there since 1996 and have enjoyed excellent growth ever since, despite the 6% duty payable. The signature of the EU-GCC Free Trade Agreement will no doubt pave the way to even greater growth in the future'.

Already, Dubal has an established infrastructure of port facilities and warehouses that enables Just-In-Time deliveries direct to end-users across Europe. The company's presence will soon be strengthened by the establishment of an office in Europe. 'This will not only bring us closer to our customers, enabling us to nurture and build long-term relationships, but will also facilitate the maintenance of even higher service and delivery standards,' says Al Sabri 'The result will be a win: win scenario for all concerned'.

'Given the growth potential in Europe, driven by higher demand and our increased production capacity, Dubal is intent on making this one of the company's strategic markets,' Al Sabri confirms. 'Metef 2008 offers an excellent forum for delivering on this ambition'.

In 2007, Dubal sold 916,000 metric tonnes of high quality finished aluminium products worldwide, of which some 214,000 metric tonnes was shipped to Europe.

Extrusion billets, used primarily in the construction, automotive and industrial sectors, accounted for 50% of the tonnage bought by customers in Europe.

Foundry alloys, used in the automotive industry, accounted for 36% with the balance (14%) being high purity metal products, used in the electronics and aerospace industries.