Expanding GCC Aluminum Production Targets Investors for Downstream Developments

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Aluminum smelters in Gulf Cooperation Council (GCC) countries produced a total of 3.74 million tons of primary aluminum in 2012, which represented 9% of total world production. In 2011, GCC countries produced 3.49 million tons. The GCC is expected to boost production capacity up to 40% to reach 5 million tons by 2014.

GCC governments are now creating initiatives to attract international investors in the downstream aluminum industry, with the aim of promoting the use of the metal in diversified industries.

"The growth potential of the GCC's aluminum industry remains exceptionally high, and the government's proactive effort to expand the industry toward the downstream sector is expected to unlock more growth opportunities in the future," said Mahmood Al Daylami, the general secretary of the Gulf Aluminum Council.

The aggressive positioning of the GCC region also reflects the growing dynamism in the global aluminum industry, which is on track to achieve an 8.4% growth in 2013, compared with 3.7% in 2012, reports Gulf Daily News. As a result of the expansion drive, the GCC is expected to account for 13% of the world's total aluminum production by the end of 2013.

The surging demand in key international markets, such as China and the rest of Asia, North America, Latin America, Eastern Europe and the Middle East, is fuelling optimism among aluminum manufacturers and investors in the GCC, as up to 80% of aluminum produced in the region is exported. Domestically in the GCC, up to 80% of aluminum supplied to the market is used in the construction sector and is creating new business opportunities.

"International investors are showing strong interest in the GCC's aluminum industry, given the region's strategic location, abundant energy resources and the proactive efforts of the GCC governments to cultivate an environment conducive for sustainable growth," said Mohammed Bader Eddin, director of the Aluminum Middle East 2013 exhibition and conference, which is to be held in Dubai from April 23 to 25.

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