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ARABAL 2013: Challenges remain for growth of GCC’s downstream aluminium industry
Edited by : AL CIRCLE
2 min read
The Gulf Cooperation Council (GCC) has all the necessary factors for a growing downstream aluminium industry but risks remain, delegates said at the 2013 Arabal conference in Abu Dhabi.
“[The downstream industry] needs further regulation, while at the same time it must defend home markets by creating a level playing field,” Walid Al Attar, vp of marketing and sales at Emal/Dubal, said.
“A particular area of concern is aggressive selling by Chinese companies,” he pointed.
China’s production of extrusion billets has seen huge growth and has led to “substantial growth in Chinese exports of aluminium products from extrusions”, Al Attar noted.
The GCC’s demand for downstream products is predominantly for extruded products, the majority of which go to the construction industry.
This is changing, with rolled products likely to become more prominent on the GCC’s downstream sector. The Ma’aden operation in Saudi Arabia includes a rolling mill, the first smelter in the region to expand into that area.
“In 2012, extrusion and wire rod dominated the GCC downstream sector. In 2015, rolled products will have increased significance,” Al Attar said.
While the region has the required supply chain, it still lacks a comprehensive and coordinated knowledge base that will spur downstream development.
“The supply side is well on the way. We need to think about how to get that grain of sand that will form the pearl around which the industry can be built,” Joe Lombard, Hatch’s global md, said.
A clustered knowledge base, including universities and manufacturers, could be that grain of sand, Lombard said, pointing to “clusters” like Canada’s Aluminium Valley and Silicon Valley in the USA.
“Downstream development builds mature economies. It means a move from exporting energy to exporting products,” Lombard said, adding that a reduction in imports and greater employment, particularly for local people, will follow.
“[The downstream industry] needs further regulation, while at the same time it must defend home markets by creating a level playing field,” Walid Al Attar, vp of marketing and sales at Emal/Dubal, said.
“A particular area of concern is aggressive selling by Chinese companies,” he pointed.
China’s production of extrusion billets has seen huge growth and has led to “substantial growth in Chinese exports of aluminium products from extrusions”, Al Attar noted.
The GCC’s demand for downstream products is predominantly for extruded products, the majority of which go to the construction industry.
This is changing, with rolled products likely to become more prominent on the GCC’s downstream sector. The Ma’aden operation in Saudi Arabia includes a rolling mill, the first smelter in the region to expand into that area.
“In 2012, extrusion and wire rod dominated the GCC downstream sector. In 2015, rolled products will have increased significance,” Al Attar said.
While the region has the required supply chain, it still lacks a comprehensive and coordinated knowledge base that will spur downstream development.
“The supply side is well on the way. We need to think about how to get that grain of sand that will form the pearl around which the industry can be built,” Joe Lombard, Hatch’s global md, said.
A clustered knowledge base, including universities and manufacturers, could be that grain of sand, Lombard said, pointing to “clusters” like Canada’s Aluminium Valley and Silicon Valley in the USA.
“Downstream development builds mature economies. It means a move from exporting energy to exporting products,” Lombard said, adding that a reduction in imports and greater employment, particularly for local people, will follow.
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