Dubal's Sultan Al Sabri (Senior Marketing Manager: Europe and US) explains 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. 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.
He adds that, in terms of geographic and economic perspectives, Dubal is ideally located to serve Europe.
"We have been active there since 1996 and have enjoyed excellent growth ever since, despite the 6 per cent duty payable," says Al Sabri. "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 sold 916,000 metric tonnes of high quality finished aluminium products worldwide in 2007, of which some 214,000 metric tonnes (about 23%) 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.
"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, with projects in Algeria and Saudi Arabia,"
continues Al Sabri.
Dubal's strategic joint venture with Mubadala, an investment vehicle wholly own by the government of Abu Dhabi, created in 2007 Emal, Emirates Aluminium that will contribute to the continuous shift of the world aluminium production to the Middle East.
The CEO of Emal, Duncan Hedditch says "Emal is constructing what will become the world's largest, single-site aluminium smelter in the world. The use of advanced, local technology and a guaranteed supply of gas from the Abu Dhabi government for a production capacity per annum of 1.4 million tonnes puts Emal in an excellent position to meet the needs of clients in Europe and other global markets."
"Europe is a critical market for the sale of the additional metal yield from these smelters, especially when the many logistics and cost benefits to end-users on the continent are taken into consideration. Emal and Dubal are intent on making Europe one of their strategic markets. Essen 2008 offers an excellent forum for delivering on this ambition," comments Al Sabri.
Essen 2008, which covers the entire value chain within the aluminium industry, will feature approximately 9,000 products and technologies presented by more than 850 exhibitors from over 40 countries. The event, launched in 1997, had almost trebled in size by 2006 and offers a platform for Dubal and Emal will utilize the opportunity to liaise with the former's existing customers in Europe as well as to network with other exhibitors and potential customers. Accordingly, a team of senior Dubal and Emal officials will be present to interact with delegates and participants during the exhibition.
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