GOIC issues a report on aluminum industry in GCC (page 1 of 2)

In a report lately issued by GOIC it is stated that primary aluminum production has steadily increased during the last three decades from 0.9% in 1975 to 4.9% in 2005. Also the report says that it is expected that a quantum jump is likely to take place during the next decade raising GCC share to around 10% by 2010 with the expansion of existing smelters and commissioning of new smelters, thus establishing the GCC region as a major player in global aluminum industry.

The report also clarified that the capacity build up is likely to exceed 3.75 MPTA by 2010 when the new smelters are commissioned in Oman, Saudi Arabia and Qatar, and when the planned expansion program of ALBA with installation of the sixth pot line project is implemented. The capacity will further increase if the long-term plan of DUBAL is realized to achieve 1.5 Mt/yr by 2011.

The report also added: ALBA's annual production of metal was 525,000 Tons and 732,000 Tons in 2004 and 2005, respectively. 100% of slabs are consumed by GARMCO for conversion to flat products. 99.7% of aluminum ingots are exported to international markets. While in DUBAL the production was 600,000 TPA of aluminum in 2004.

Being located in Dubai, DUBAL has the advantage of expediting shipments to markets in the Far East (Japan, Korea, Taiwan and China), the ASEAN region, as well as Europe and USA. Furthermore, it also reported that plans are ahead for establishing new smelters in Oman, Saudi Arabia and Qatar. Oman is having a long-standing plan for setting up an aluminum smelter in Sohar. As a joint venture of Oman Oil Company, the project is executed with an initial capacity of 330,000 TPA, and it is scheduled to double its capacity to 660,000 TPA by 2010. In Saudi Arabia, there is a good reserve of about 126 Mt of bauxite containing 57.5% alumina. Maaden Co. has decided to build an aluminum smelter within a project that will comprise the mining project in the north, and a bauxite refiner and an aluminum smelter on the east coast. The project is estimated to cost US D 302 billion with a capacity of 600,000 TPA of aluminum. Yet, due to lack of railroad that can carry bauxite from the north to the east coast, the project may not be feasible till a rail link is established. The indicative timeframe is 2008-2009.

As far as Qatar is concerned, the report says, that the indicative timeframe is 2008/2009. As for Qatar, the proposed smelter project is to be implemented by a joint venture company of QP and Hydro, and to be based on Hydro reduction technology. The smelter will be located in Mesaieed Industrial Area, with a proposed capacity of 570,000 TPA, and the indicative timeframe for commissioning is 2009.

In addition, the report talks about the semi-finished aluminum products, and that the GCC states made notable progress in the production of rolled and extruded products. They have almost attained self-sufficiency. For extruded products, they meet regional requirements and export 40% of the production to international markets. More than 80% of cold rolled products are exported. Yet, they still import 55,000 TPA of rolled products, mostly foil and coated flat products. UAE comes first in aluminum secondary metal product firms (80), followed by Saudi Arabia (5), Bahrain (2), and one each in Kuwait, Oman and Qatar. As for rolling mills, there are two establishments in the GCC states: GARMCO in Bahrain and Profiles RHF LLC in Sharjah, UAE.