07 OCTOBER 2013Platts
UAE's Senaat and Ducab launch 50,000 mt/yr aluminum rod mill joint venture
Edited by : AL CIRCLE
2 min read
The UAE's Senaat group and Ducab plan to build an aluminum rod mill in the latest metals sector collaboration between companies owned by the governments of Abu Dhabi and Dubai, the UAE's official WAM news agency said Thursday.
The joint venture, Ducab Aluminium, proposes to build a factory with an annual output capacity of 50,000 mt of aluminum rods at an estimated capital cost of $60 million. The plant will also produce electrical connectors and wiring.
The manufacturing facility will be located in Abu Dhabi's Khalifa Industrial Zone (Kizad), close to an aluminum smelter operated by Emirates Aluminium, or Emal, the joint venture aluminum refiner co-owned by the Abu Dhabi and Dubai governments. The two adjacent emirates respectively have the largest and second largest economies of the seven emirates comprising the UAE.
Kizad is located at Taweelah, near the border between Abu Dhabi and Dubai.
Senaat is an Abu Dhabi state-owned industrial investment and holding company. Ducab is a Dubai-based cable manufacturing company jointly owned by Senaat and Dubai sovereign wealth fund Investment Corporation of Dubai. Ducab has existing factories in Abu Dhabi and Dubai.
Construction of the new aluminum rod mill is to start in Q1 2014, with the plant scheduled to open in early 2016.
The government of Abu Dhabi has been pushing the development of an integrated aluminum complex at Kizad which it has termed the "hot metal road." It hinges on a special route for transporting molten aluminum from Emal's smelter to facilities operating in the extrusion and casting sectors.
The Kizad rod mill will be the UAE's first, competing with existing regional producers in Bahrain and Oman.
Ducab Aluminium will use Ducab's sales network initially to target markets in the Middle East and North Africa, with the possibility of expanding its marketing reach to Europe and the Indian subcontinent.
In June, Emal and Dubai state-owned Dubai Aluminium, or Dubal, announced a merger to create a larger aluminum producer, emirates Global Aluminium.
The drive to develop its metals sector is part of Abu Dhabi's strategic plan to diversify its economy away from petroleum.
The joint venture, Ducab Aluminium, proposes to build a factory with an annual output capacity of 50,000 mt of aluminum rods at an estimated capital cost of $60 million. The plant will also produce electrical connectors and wiring.
The manufacturing facility will be located in Abu Dhabi's Khalifa Industrial Zone (Kizad), close to an aluminum smelter operated by Emirates Aluminium, or Emal, the joint venture aluminum refiner co-owned by the Abu Dhabi and Dubai governments. The two adjacent emirates respectively have the largest and second largest economies of the seven emirates comprising the UAE.
Kizad is located at Taweelah, near the border between Abu Dhabi and Dubai.
Senaat is an Abu Dhabi state-owned industrial investment and holding company. Ducab is a Dubai-based cable manufacturing company jointly owned by Senaat and Dubai sovereign wealth fund Investment Corporation of Dubai. Ducab has existing factories in Abu Dhabi and Dubai.
Construction of the new aluminum rod mill is to start in Q1 2014, with the plant scheduled to open in early 2016.
The government of Abu Dhabi has been pushing the development of an integrated aluminum complex at Kizad which it has termed the "hot metal road." It hinges on a special route for transporting molten aluminum from Emal's smelter to facilities operating in the extrusion and casting sectors.
The Kizad rod mill will be the UAE's first, competing with existing regional producers in Bahrain and Oman.
Ducab Aluminium will use Ducab's sales network initially to target markets in the Middle East and North Africa, with the possibility of expanding its marketing reach to Europe and the Indian subcontinent.
In June, Emal and Dubai state-owned Dubai Aluminium, or Dubal, announced a merger to create a larger aluminum producer, emirates Global Aluminium.
The drive to develop its metals sector is part of Abu Dhabi's strategic plan to diversify its economy away from petroleum.
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