Dubai Aluminium pays trade visit to Japan

The trip included a high-level reception party for approximately 150 guests, hosted at Imperial Hotel, Tokyo.

Currently ranked as the world's seventh largest producer of primary aluminium, DUBAL's smelter complex at Jebel Ali, Dubai, has the capacity to produce 950,000 tonnes of hot molten aluminium per year and holds a 2.3% share of the 38 million tonnes-a-year market (2007 figures).

The company has supplied its products, which come in three main forms - foundry alloy for automotive applications, extrusion billet for construction, industrial and transportation purposes and high purity aluminium for the electronics and aerospace industries - to Japan since DUBAL began selling metal in 1980.

Almost 10% of the company's 280-strong customer base worldwide is based in Japan. In 2008, DUBAL expects to ship 100,000 tonnes of aluminium to Japan (equating to approximately 10.5% of its projected total production), the majority of which will be billet (52%), followed by high purity aluminium (25%), foundry alloy (11%) and standard purity (9%).

DUBAL's trusted partner in Japan, Itochu Corporation, Tokyo, played a key role in co-ordinating the sales and logistics for the entire trade delegation visit. The two companies also worked closely to create a substantial presence for DUBAL at the Automotive Engineering Exposition 2008, which took place from 21 to 23 May 2008 in Yokohama, Japan.

Designed to provide a platform for manufacturers of automobiles, parts and material, testing and measurement equipment, software, car-electronics and related companies to exhibit their latest products and technology, this show gave DUBAL an ideal forum for once again showcasing the company's specialised alloy products that are used extensively by Japanese auto part manufacturers.

Speaking at the reception party, Mr Kalban said that Japan is an important market for DUBAL. The relationships nurtured with customers over the past 28 years are highly valued and demonstrate a combination of an ongoing commitment to excellent customer support services and customer loyalty.

"We are pleased to be here to show our immediate and long-term support for this market," said Kalban.

He went on to explain how a strategic plan is unfolding at DUBAL, the ultimate goal of which is the realization of the company's vision to become the fifth largest producer of primary aluminium in the world by 2015, by producing 2.5 million tonnes per year.

The additional metal will place the company in a stronger position to supply the growing global demand for its high quality aluminium in the near- to medium-term.

Already, DUBAL's world-class smelter complex has set its sights on producing upwards of one million tonnes in 2008 by optimizing both the advancing technologies and operating parameters within the plant, so as to enable organic growth in productivity.

Going forward, DUBAL has begun to invest in projects that will facilitate green-field growth. For example, a joint venture partnership has been developed with Mubadala Development, known as Emirates Aluminium ("EMAL") International, to develop green-field smelters primarily in the MENA region.

Three projects have already been launched:

• The EMAL project at Al Taweelah in Abu Dhabi, which involves a 1.4 million metric tonne smelter to be constructed in two phases, the first of which (700,000 metric tonnes) is expected to be commissioned by 2010;
• Algeria, where a 700,000 metric tonne smelter is to be developed at the Béni-Saf industrial and port zone, and commissioned by 2010;
• A Memorandum of Understanding regarding the green-field development of a 700,000 metric tonne per annum smelter complex in King Abdullah Economic City, Saudi Arabia, which, if approved will be constructed with a view to commissioning by April 2010.

DUBAL is also determined to secure its future alumina requirements by investing upstream, and has already entered into two joint ventures:

• A joint venture with Larsen & Toubro in India, for the development of a 3.0 million tonne per year alumina refinery with associated bauxite mine and a 220,000 tonne per annum smelter, all located in Orissa. DUBAL will hold 74% equity in the joint venture.
• The Guinea Alumina Project, which entails the development of a 3.3 million tonne per year alumina refinery with associated bauxite mine in the Republic of Guinea. DUBAL has a 25% equity stake in the project as well as a guaranteed offtake of 40% of the production. This project is a joint venture with BHP Billiton, Mubadala and the original promoters Global Alumina.

More than 90% of DUBAL's current production is exported, with the majority (36%) destined for Asia. Being an independent primary aluminium producer, with no downstream interests, the company is in a strong position to compete in a market where the trend is away from the conversion of equity metal from integrated aluminium conglomerates into end products towards the formation of alliances with non-integrated, independent players.

"This is exactly the space we operate in," says Mr Kalban. "The large additional volumes of metal coming on stream within the next three to five years places DUBAL in a strong position to benefit from this evolutionary trend."