UAE aluminum extrusion market is expected to boom

The UAE aluminum extrusion market is estimated to be in excess of 175,000 metric tonnes (MT), about 35 per cent of the total GCC demand, growing at a CAGR of 8 to 9 per cent for the time period from 2011-17, said a report.

With the strategic acquisition of AKFA Aluminium and Plastic, the UAE-based Emirates Extrusion Factory is poised to become one of the top players in the GCC, according to Frost & Sullivan, a leading business research & consulting firm.

A subsidiary of Masharie, the private equity arm of Dubai Investments, the Emirates Extrusion Factory had last week announced the acquisition of a hitech production facility for aluminium extruded profiles from AKFA Aluminium and Plastic FZE, to increase its operational efficiency and meet rising demand.

"When other regional players are focusing on organic growth (or expansion of existing lines), Emirates Extrusion Factory has raised the bar by investing to buy-out an existing facility in the UAE which is expected to reduce the potential risk in Greenfield expansion," said S Venkatesan, the director of Metals and Minerals Practice, Mena and South Asia, Frost & Sullivan, in his comments.

Frost & Sullivan, he said, forecasts this to be a fair deal as the feed stock proximity from nearest smelters, sea port access, low cost of production, additional space for capacity expansion and fruitfully a large customer base for aluminum extruded profiles in the UAE will help the Emirates Extrusion Factory.

Also, Emirates Extrusion Factory can focus more on the non-architectural sectors as the architectural sector was affected by the real estate slump and recession, which in return hampered the growth of the extrusion companies, he added.