EGA to increase supply of aluminium to BMW
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.