Dubal continues to invest in future markets

Not only have major and minor producers the world over shut down excess or unprofitable capacity and slashed jobs, but also investments in future markets have largely been put on hold.

Contrary to these dynamics, Dubai Aluminium Company Limited (Dubal), the world's largest primary aluminium producer with a captive power station, and one of the lowest-cost producers in the sector, continues to operate at its full capacity of 960,000 metric tonnes per year, while pro-actively investing in future growth opportunities.

So says Walid Al Attar, Vice President: Marketing & Sales, who explains that Dubal considers the current economic situation a golden opportunity to get closer to its customers by getting a better understanding of their requirements in terms of demand patterns and other parameters.

Al Attar says:

"For example, based on the fact that 70% of the growth in aluminium demand in recent years has come from China, we see the Chinese market as a major driver of global growth in aluminium demand and associated price improvements. Accordingly, Dubal will once again participate in the Aluminium China 2009 exhibition, which takes place in Shanghai from 30 June to 2 July this year."

Rated as the most important and comprehensive aluminium industry event in China, the annual Aluminium China exhibition offers a definitive international networking and trading platform where professional visitors can meet with suppliers of raw materials, semi-finished and finished products, surface treatment and producers of machinery, plant and equipment for aluminium processing and manufacturing, light-metals trade and service providers.

"With all this on offer, Aluminium China presents a perfect opportunity for Dubal to view the latest aluminium technologies while showcasing our products and services to the 10,000 people who are expected to visit the exhibition," says Al Attar.

Dubal's presence at Aluminium China 2009 is particularly important in the light of ongoing negotiations between the GCC and China regarding the formulation of a Free Trade Agreement (FTA). Initiated by the GCC in 2008, the negotiations to date have entailed representatives of both regions meeting on two occasions; with both sides currently reviewing the packages in terms of products, services and other joint co-operations.

"Negotiations are still at an early stage, and may take a year or so to conclude," says Al Attar. "Dubal is playing an active role in the negotiations as access to this important market will be vastly improved should the current duties be dropped."

Mohammed Al Mutawa, Marketing & Sales Manager: Asia, is confident that Aluminium China 2009 will draw delegations from across China and farther a field, especially from South-East Asia, many of whom have been customers of Dubal for many years. Indeed, the Far East and ASEAN regions have represented Dubal's major markets since the company's inception, with the growth in sales volumes over the years reflecting the genuine, mutually beneficial partnership-based approach taken by Dubal from the outset. Together, the two regions accounted for 37% of Dubal's total sales in 2008 - comprising a combination of foundry alloy (primarily for automotive applications), extrusion billet (used in the construction, industrial and transportation sectors) and high purity aluminium (for the electronics and aerospace industries).

Given the substantial government-backed packages aimed at boosting China's infrastructure and real estate markets, a resurgence in the demand for primary aluminium in the region is expected in the short- to mid-term. There are already indications that industrial recovery in China will commence in the second half of 2009.

"Our participation at Aluminium China 2009 will reinforce the strong position that Dubal holds in the Asian markets by demonstrating our high quality standards, service ethics, reliable delivery and professionalism, as well as our sincere commitment to the market," says Al Mutawa.

"It will also enable us to stay up-to-date with the changing market dynamics by giving us insight into market trends in terms of growth and business demands. In turn, this will equip us to plan strategically for the substantial additional production capacity and new product lines that Dubal will be offering to the market once Emal is commissioned in the first half of 2010. The timing will be perfect for us to benefit from the tremendous growth potential in Chinese markets once business is renewed," he added.