ADBIC and Gulf Extrusions sign MoU to establish aluminium extrusion plant in excess of $100m

Building on its strategy to develop a sustainable industrial base in Abu Dhabi, Abu Dhabi Basic Industries Corporation (ADBIC) has signed a Memorandum of Understanding (MoU) with Gulf Extrusions Co., one of the largest manufacturers of Aluminium Extrusion Products in the region. This joint partnership is aimed at establishing an Aluminium Extrusion plant in Taweelah. The MoU was signed by Jamal Al Dhaheri, Chief Executive Officer of ADBIC, and Majid Al Ghurair, Executive Chairman of Gulf Extrusions. With an estimated investment of over $100m (equivalent to Dhs368m), construction of the plant is expected to begin in the third quarter of 2010 at the Khalifa Port and Industrial Zone in Taweelah. The plant will produce 50,000 tons per annum (tpa) of aluminium extrusion and extrusion-based niche-oriented products, such as high-end architectural systems and automotive and engineering extrusions, using environmentally-friendly processes. Aluminium billets and liquid aluminium metal will be sourced from the adjacent 718,000 tpa Emirates Aluminium (EMAL) smelter, currently under construction in Taweelah, Abu Dhabi. Speaking on behalf of ADBIC, Al Dhaheri, said: "We are very pleased to be partnering with Gulf Extrusions. Our collaboration serves to reinforce ADBIC's focused efforts to expand the downstream manufacturing sector in Abu Dhabi. This partnership will position the UAE as a leading exporter of aluminium extrusions to international markets." Representing Gulfex, Al Ghurair added, "This joint venture is strategically important for Gulf Extrusions in its quest to become a world leader in the aluminium extrusions business." Al Ghurair went on to say, "This partnership brings together the technical expertise of one of the region's largest manufacturers of aluminium extrusions with the experience of a leading industrial investment company in the region." Following the launch of United Cables Company earlier this year, the new Aluminium Extrusion plant will be the second aluminium downstream project promoted by ADBIC in a series of projects that will be based on the metal produced by EMAL.