GOIC issues a report on aluminum industry in GCC (page 2 of 2)

GARMCO, with a production capacity of 162,000 TPA of cold rolled products and 20,000 TPA of foils, produced around 138,000 TPA of cold rolled products in 2004, and 150,000 tons in 2005, as well as 15,000 tons of foils in 2004.

The Profiles RHF LLC of Sharjah operated in July 2000 with a capacity of 20,000 TPA of rolled products and 5,000 TPA of foils. The plant has a plan to increase cold rolling capacity to 65,000 TPA.

Due to the expansion in the construction sector, several extrusion plants have been set up all over GCC states. There are 22 major extrusion plants in the region with a total production capacity of 300,000 TPA, and the overall capacity utilization exceeds 88%. Most of the plants have anodizing, powder coating and painting facilities. About 60% of the extruded products are used in GCC and the balance is exported to international markets.

The report also says that Cables are manufactured in Midal Cables which started production in 1977 as a joint venture between Inter Steel Bahrain and Olex Cables Australia. The major product lines are aluminum and aluminum alloy conductor and wire, metal form products, and aluminum and aluminum alloy redraw rod and wire. The metal form products are manufactured by Conform extrusion technology for both simple and complex shapes in solid, hollow and sheet forms of aluminum and aluminum alloy. 60% of Medal's products are exported to overseas markets in 57 countries. A number of downstream industries have come up to draw the cast aluminum rod into wires.

Aluminum powder is produced in Bahrain Atomization International Company set up in 1973 as a joint venture between the Government of Bahrain and Breton Investments Limited. The plant capacity, which is fully utilized, is 6,500 TPA. Almost 100% of the production is exported.

Aluminum wheels are produced by Aluwheel Company in Bahrain. Several models of alloy wheels blank castings and wheel alloy ingots are produced from the liquid aluminum supplied by ALBA. The production capacity is around 15,000 TPA of which 20% is for blank wheels and 80% for alloy ingots. 100% of the products are exported.

The number of firms for aluminum finished product industries amounts to 496 with investments exceeding US D 950 millions, and labor force of more than 24,000. Of these industries, 16 are engaged in coating, 8 in barrel making, 12 in foil production and more than 400 in fabricated items such as doors and windows, to meet the requirements of the booming construction sector.

The average imports and exports of aluminum products in the GCC states for the last four years, the report says, amount to 407,490 TPA and 1,104,970 TPA, respectively. Thus, the GCC region as a whole is a net exporter of aluminum products. Bahrain and UAE are the net exporters, and all other states are net importers.

The report also clarifies that the environmental aspects, both the smelters of ALBA and DUBAL are certified ISO 14000 companies, and have shown considerable concern for the environment. ALBA has spent a huge sum of US D 310 millions towards improvement in environment. DUBAL has also spent over US D 120 millions in environment management plan during the last two expansion programs. Also, there has been considerable progress in downward industries for semi-finished rolled and extruded products, and powder in the GCC states. The opportunities exist for setting up further downstream facilities for production of semi-finished products as well as parts and components for development of engineering industries.