Emirates Aluminium seek USD 3 billion for expansion

 

 

Two people with knowledge of the matter said that funding will be split between export credit agencies and commercial banks declining to be identified because the deals are yet to be completed. Emirates Aluminium is owned by Mubadala Development Co and Dubai Aluminium Co.

 

 

Mr Saeed al-Mazrooei CEO of Emirates Aluminium said that “We are working with shareholders to finalize the funding structure. There are still many options to decide from but declining to elaborate.”

 

 

Persian Gulf countries are investing in petrochemicals and metals output to diversify their economies away from crude oil and benefit from cheap power and gas prices. Energy accounts for 30 to 40% of aluminum smelting costs, according to Brook Hunt, a London based unit of Wood Mackenzie Consultants Ltd.

 

 

Emirates Aluminium, known as Emal, will spend USD 4.5 billion to expand the smelter’s annual output to 1.3 million tonnes by 2014 from 750,000 tonnes now. Shareholders will provide the remaining third of the fund.

 

 

Mr al- Mazrooei said that the company has completed 5 percent of its expansion. Demand for Emal’s aluminum is about 950,000 tonnes, more than its current production.