ADBIC and Gulf Extrusions to Set Up 5,000-Ton-Per-Year Aluminum Extrusions Plant in Abu Dhabi

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial development and investment company Abu Dhabi Basic Industries Corporation (ADBIC) (Abu Dhabi, United Arab Emirates) and aluminum extrusion products company Gulf Extrusions Company (Gulfex) (Dubai, United Arab Emirates) have signed a memorandum of understanding under which the companies will jointly set up an aluminum extrusion plant with an estimated investment of about $100 million. The facility will be set up in the Sheikh Khalifa Port and Industrial Zone that is currently being set up in Taweelah, Abu Dhabi. The proposed plant will manufacture aluminum extrusion products both for the domestic and overseas markets.

Liquid aluminum and aluminum billets, the raw materials for the extrusion plant, will be procured from the nearby 718,000-ton-per-year aluminum smelter currently under construction. The smelter facility is being developed by Emirates Aluminium (Dubai). The construction of the extrusion plant is slated to begin in the third quarter of 2010 and will have a production capacity of 50,000 tons per year of aluminum extrusion and extrusion-based specialty products, inculding automotive and engineering extrusions, and high-end architectural systems.

Signing the memorandum with Gulfex was part of ADBIC's strategy to develop an industrial base in Abu Dhabi. In fact, ADBIC was created in 2007 for this very purpose. The new venture will help expand Abu Dhabi's downstream manufacturing sector and place United Arab Emirates in a leading position in the global aluminum extrusions markets. Gulfex is one of the largest companies of its kind in the region. In 2008, the company produced 50,000 tons of extrusion products. The products ranged from components for household items to architectural sections, and from customized products for the engineering and automotive industries to air conditioning grills. According to Executive Chairman of Gulf Extrusions Majid Al Ghurair "This partnership brings together the technical expertise of one of the region's largest manufacturers of aluminum extrusions with the experience of a leading industrial investment company in the region." Jamal Al Dhaheri, CEO of ADBIC, represented the company at the signing ceremony.

The proposed aluminum extrusions project will be the second aluminum downstream project based on products of EMAL that is being promoted by ADBIC. Earlier this year, ADBIC launched the United Cables Company, which will also utilize EMAL's products.

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