Dubal buys 20% stake in project

The Pak Banker - - 6BUSINESS -

Dubai Alu­minium Co., or Dubal, has bought a 20 per cent stake in a cal­ciner devel­op­ment project in China as it seeks to se­cure its raw ma­te­ri­als sup­ply and mit­i­gate qual­ity con­cerns, the firm said.

The stake was pur­chased as part of a joint ven­ture with Si­noway Car­bon En­ergy Hold­ings, Hong Kong, for an undis­closed sum, Dubal said in an emailed state­ment.

The new ven­ture, known as Si­noway Car­bon Com­pany Ltd, en­tails the con­struc­tion of a 560,000 tonnes per an­num cal­ciner in Shan­dong, China.

Dubal said the end-prod­uct of the cal­ci­na­tion process, cal­cined pe­tro­leum coke, is a strate­gic raw ma­te­rial for the alu­minium smelt­ing in­dus­try and the com­pany will be en­ti­tled to an an­nual off-take vol­ume of CPC for its smelt­ing op­er­a­tions.

While not­ing ris­ing CPC prices due to raw ma­te­rial sup­ply con­straints, Ab­dul­lah Kal­ban, Dubal’s pres­i­dent and chief ex­ec­u­tive, said: “CPC is one of the main drivers for cost of pro­duc­tion, hence an im­por­tant fac­tor in the busi­ness equa­tion. With a se­cure sup­ply of suit­able qual­ity CPC from Si­noway cal­ciner, Dubal will be well placed to counter this trend.

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