EGA to in­crease sup­ply of alu­minium to BMW

The National - News - - BUSINESS - FAREED RAH­MAN

Emi­rates Global Alu­minium, the UAE’s big­gest in­dus­trial com­pany out­side the oil and gas sec­tor, is plan­ning to sig­nif­i­cantly in­crease its sup­ply of alu­minium to Ger­man car maker BMW, it said yes­ter­day.

EGA has been sup­ply­ing alu­minum to BMW since 2013 to be used in en­gines and the new agree­ment will ex­tend the pair’s agree­ment un­til 2022.

“The BMW group has high stan­dards for the qual­ity of metal as well as for sus­tain­abil­ity and so­cial re­spon­si­bil­ity,” said Ab­dulla Kal­ban, EGA’s man­ag­ing di­rec­tor and chief ex­ec­u­tive. “We are proud that we have main­tained BMW group’s trust over the past six years and that our re­la­tion­ship will con­tinue into the next decade.”

Europe ac­counts for about a quar­ter of EGA’s world­wide sales of alu­minium, with one third go­ing to the car in­dus­try.

EGA, which is jointly owned by Abu Dhabi’s strate­gic in­vest­ment arm, Mubadala In­vest­ment Com­pany, and the In­vest­ment Cor­po­ra­tion of Dubai, re­cently an­nounced its new re­fin­ery at Al Tawee­lah is set to at­tain full pro­duc­tion next year, pro­vid­ing 40 per cent of the alu­mina re­quired for its pro­duc­tion.

The $3.3 bil­lion (Dh12.1bn) re­fin­ery will start pro­duc­ing 2 mil­lion tonnes of alu­mina per year in 2020, dou­bling its ca­pac­ity from a to­tal of 1 mil­lion tonnes that it is set to pro­duce by the end of this year.

EGA’s alu­minium is pri­mar­ily used in the con­struc­tion, au­to­mo­tive, pack­ag­ing, aerospace and elec­tron­ics in­dus­tries. In 2018, the com­pany pro­duced a record 2.6 mil­lion tonnes of cast metal and made a profit of Dh1.2bn on rev­enue of Dh23.5bn.

More than 80% of EGA’s pro­duc­tion is in value-added prod­ucts, one of the high­est rates in the world

Rev­enue in­creased by 15 per cent, which the com­pany said was driven by higher sales vol­umes, in­creased alu­minium prices and an in­crease in the amount of value-added prod­ucts sold. More than 80 per cent of its pro­duc­tion is in value-added prod­ucts, one of the high­est rates of any alu­minium pro­duc­ers in the world.

EGA has more than 350 cus­tomers in about 60 coun­tries, with the ma­jor­ity of its sales go­ing to South East Asia, fol­lowed by the US and Europe.

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