Emal’s expansion on track

DUBAI — Emirates Aluminium, popularly known as Emal, is very well-placed to meet the rising global demand for aluminium and its expansion plan will not get hit by the debt crisis in Europe and the United States, its top official said.

Emal, a joint venture between Abu Dhabi’s Mubadala Development Company and Dubai Aluminium, or Dubal, plans to increase its customer base in the wake of the second phase of its $4.5 billion development that will almost double its production capacity to 1.3 metric million tonnes by 2014.

“Emal is a global business attracting customers around the world, with focus on local, Middle East, European, Asia and North American markets,” Saeed Fadhel Al Mazrooei, president and chief executive officer of Emal, told Khaleej Times during an interview.

He said the company currently supplies aluminium products to over 200 customers around the globe. The UAE currently provides 50 per cent of the aluminium capacity of the GCC, which represents eight per cent of the total world production in 2011.

“The year 2011 has been a landmark year for the company. The future outlook for Emal is very positive and we expect 2012 to be another successful year in the development of this Abu Dhabi flagship industrial project,” Al Mazrooei said. Excerpts from the interview:
How much total investment is being made in phases one and two of Emal’s development to increase production?

The investment in phase one was $6 billion and for phase two it will be $4.5 billion, which makes a total investment of $10.5 billion. As a result Emal’s production capacity will rise to 1.3 metric million tonnes. What is the progress on phase two so far?

Emal conducted a study before announcing the start of phase two. In August 2011 main contractors have been selected and in September 2011 an official ground breaking ceremony was held on site at the Al Taweelah smelter, announcing the start of the construction activities.

How was 2011 for Emal in terms of sales, production and profit growth? How do you see the outlook for 2012?

2011 has been a landmark year for Emal. We began 2011 hitting full production and by November 2011 we hit the symbolic mark of one million metric tonnes of hot metal produced. Emal is now producing over 2,000 tonnes of hot metal every day. Emal currently supplies over 200 customers around the globe and is looking to increase its customer base once phase two is fully operational. The future outlook for Emal is very positive and we expect 2012 to be another successful year in the development of this Abu Dhabi flagship industrial project.
What is the projected increase in global aluminium demand by 2015?

Global demand for aluminium is expected to total 44 million metric tonnes in 2011 and will rise to 58 million metric tonnes in 2015.
Do you think Emal’s 1.3 metric million tonnes output by 2014 will meet the projected demand in global markets?

With world demand due to increase by five per cent and phase two to almost double the production capacity, future demand was a factor in our decision to announce the phase two development in 2011. Emal is very well placed to meet this increased demand and is very confident about the future.
Which are the key export markets for Emal? Which markets would you like to explore after the expansion?

Emal currently supplies quality aluminium products to over 200 customers around the globe and our target is to increase that customer base as a result of the Phase II development. Emal is a global business attracting customers around the world, with focus on local, Middle East, European, Asia and North American markets.

The Gulf region is investing heavily in infrastructure and development projects. How do you see the aluminium demand in the region?

While the trend remains for production in the region to be exported demand for aluminium in the region is expected to increase. Published figures indicate $985 billion in infrastructure investment within the GCC between 2010 and 2015, including large-scale projects such as the GCC rail network, which will lead to increased metal demand and thus greater growth potential than previously anticipated. This demand will be supplemented by growth in the local downstream market for which Emal is ideally placed due to the immediate proximity of the Khalifa Industrial Zone.
How much Emal production is sold in UAE and Gulf markets? What is its share in the export market?

The UAE, through both Emal and Dubal, currently provides 50 per cent of the aluminium capacity of the GCC, which represents eight per cent of the total world production in 2011. Approximately 88 to 92 per cent of aluminium produced in the UAE is exported to global markets. In 2011, Emal exported 172,000 metric tonnes of aluminium to Europe, compared to 22,000 metric tonnes in 2010.
Do you think slowdown in global markets in the wake of the debt crisis in Europe and the US may hit Emal’s expansion plan?

Emal’s business plan has been developed in line with the Abu Dhabi 2030 Vision to bring long-term diversification and economic growth to the country. Emal see a bright future for the global aluminium industry and has no plans to alter its expansion programme.
How did Emal perform during the recent recession?

Work only began on building the smelter in 2007. The project was delivered ahead of schedule and on budget. At the end of 2010 Emal hit full production capacity of 750,000 metric tonnes and by November 2011 we hit the major milestone of one million tonnes of hot metal produced.
How is Emiratisation at Emal? How many Emiratis are in your payroll?

Currently we have 391 Emiratis, of which 81 are male engineers and 15 are female engineers and we are committed to increasing that number with phase two expansion. Emal has an advanced training programme, which includes pre-employment courses, or PECs, for Emirati graduates, a university scholarship scheme and summer training for students. Successful completion of one of the four PECs (smelter, power plant, craft [1 and 2] and administration) leads to an automatic job opportunity for Emiratis.
How many jobs will be created after the expansion and how much will go to local people?

The current number of employees is 2,000, which will rise to 3,000 in 2014 upon completion of phase two development. Emal is committed to increasing the numbers of Emiratis who work for the company.
How much does Emal invest in staff training?

Emal’s approach to training is ‘to invest today for tomorrow’. In addition to training for prospective employees such as the summer training programme (which was expanded in 2011) and Pre-Employment Courses (PEC) (which added a new course in 2011), Emal invests in its staff. We support the professional development of our employees to better equip them to innovate and pursue excellence in their roles.

Emal is going to be world’s largest smelter after the expansion plan. Any impact on the environment because of its industrial operations?

Emal will be one of the world’s largest single-site smelters, operating the world’s longest single production line at 1.7km once phase two is completed. Emal is committed to protecting the environment and has already invested over $700 million during phase one in the latest sustainable cutting-edge technologies to minimise its carbon footprint, and ensure the ecology of the area continues to thrive. For phase two, Emal will adopt a similar strategy in protecting the environment, which works in line under the guidance of The Environment Agency – Abu Dhabi.
How important was the DuPont Safety Awards for Emal? How did this award add value to your company?

Health and safety is at the core of the Emal philosophy. Winning the Du Pont award in 2011 is a global recognition of the hard work everyone in Emal has contributed to the deep-rooted culture of safety we insist upon at Emal. We are proud to have this award from an organisation such as DuPont that has a mutual belief in promoting safety culture by adopting positive safety behavior, working together will enhance the pursue of being at the top of safety. What is the track record of Emal in terms of corporate social responsibility?

Emal takes its responsibilities to society very seriously. Emal’s objective is to be at one with the local community: to be a part of the community, not just a neighbour. Emal has an open, continual dialogue with people living near the Al Taweelah smelter, which includes newsletters, open meetings and special community events.