Aluminum Production from Middle East's Gulf Cooperation Council Grows 31% in 2014

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The Gulf Cooperation Council's (GCC's) five aluminum companies produced a combined total of 4.92 million tonnes of primary aluminum in 2014, more than a 31% increase from the 3.7 million tonnes produced in 2013, according to the Gulf Aluminum Council (GAC). Aluminum production by the GCC countries makes up 10% of total world production, according to the GAC.

The five producer companies are Emirates Global Aluminum (OTC:EMAL.F) (Abu Dhabi), Aluminum Bahrain (LSE:ALBH) (Askar, Bahrain), Maaden (Riyadh Saudi Arabia), Quatalum (Mesaieed Industrial City, Qatar) and Sohar Aluminum (Majan Industrial Area, Oman).

"The main increase has come from Maaden Aluminum and Emal Phase 2 completion before the target date," said Mahmood Daylami, the general secretary of the GAC. He added that production for 2015 is expected to exceed 5 million tonnes.

Consolidating its place among the leading hubs for the aluminum sector, the GCC utilizes 40% of its production in the downstream aluminum industry in the Gulf for products for the regional and international market. The balance of primary aluminum production is exported to global markets.

Concurrent with the GAC report Alcoa Incorporated (NYSE:AA) (New York, New York), the largest U.S. aluminum producer, said that global aluminum demand is expected to grow at a rate of 7% as automakers use more of the lightweight metal, and orders grow from the aerospace industry. Demand for commercial and regional jets will help boost aerospace sales as much as 10%, and U.S. auto sales will rise 5.8% in 2015.

Alcoa predicted growth in other aluminum end-user markets, with demand rising as much as 7% in the construction sector. Gains also are expected in gas turbines and in packaging, although at slower rates.

Alcoa has been re-positioning itself as a metals engineering and manufacturing company, reducing its exposure to the price of aluminum.

Aluminum output is also growing, Alcoa said, which predicted that 5.1 million tonnes of new output will be added in 2015, of which 4.4 million tonnes will be in China.

For related information, see August 19, 2014, article - Middle East Aluminum Production Growing 8.4%, Global Sector Growth 3.5%.

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