Search form

Last updated: 42 sec ago

You are here

Business & Economy

Mubadala, ICD merge to create $ 15 billion aluminum entity

Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai (ICD) have announced the creation of $ 15 billion worth Emirates Global Aluminum (Emal), which will be the fifth-largest global aluminum company by production once Emal Phase II is complete in H1, 2014.
The new move, a jointly-held equal-ownership company, will integrate the businesses of Dubai Aluminum (DUBAL) and Emirates Aluminum with plans for significant local growth and international expansion. Both companies were discussing the merger of their smelters for more than six years.
Chairmen of the two shareholding companies Sheikh Mohammed bin Rashid Al-Maktoum, vice-president and prime minister of the UAE and ruler of Dubai, and General Sheikh Mohamed bin Zayed Al-Nahyan, crown prince of Abu Dhabi and deputy supreme commander of the UAE Armed Forces, witnessed the signing of the agreement here yesterday.
"Today's (Monday's) announcement builds on what these two outstanding organizations have created and reflects the UAE's long-term industrial strategy. Emirates Global Aluminum will accelerate employment with 2,000 direct jobs being created by 2020, adding to more than 6,200 direct jobs already in existence. We also conservatively estimate that a further 6,000 indirect jobs will be generated, delivering total employment of over 33,000 people by the UAE aluminum sector through the end of this decade."
Pending required approvals, the formal commencement of joint operations is expected to be completed within the first half of 2014, at which stage further announcements will be made,” said Mohammed Al-Shaibani, CEO of ICD.
Emal will look to expand along the value chain, from aluminum smelting to alumina refining and bauxite mining overseas. Given its scale, Emal will also continue to attract downstream manufacturing and ancillary businesses related to aluminum smelting and alumina refining as it grows, thereby indirectly creating additional jobs.
The new company will be managed by a board of directors that will be chaired by Khaldoon Khalifa Al-Mubarak, current chairman of Emal, while Saeed Mohammed Ahmed Al-Tayer, vice-chairman of DUBAL, will become its vice-chair. The board will also include Sultan Al-Jaber, Abdulla Kalban, Khaled Al-Qubaisi, Ahmed Yahia Al-Idrissi, Abdul Wahed Mohammad Al-Fahim and Khalid Al-Bakhit.
"The creation of a new global industrial champion anchored in the UAE is an important step toward realizing our vision for a diversified and sustainable economy. It is especially inspiring that the UAE technology contributed to the success of this business and that it will continue to be led by the UAE nationals as it grows locally and globally," said Al-Mubarak, CEO of Mubadala.
Mohamed Al-Shamsi, acting CEO of Abu Dhabi Port Company (ADPC), welcomed the news that Mubadala and Investment Corporation of Dubai have merged to create the new entity. Emal is an important anchor tenant for Kizad industrial zone. The site already includes a 2,000 MW power plant, a carbon plant, flexible cast-house and the world’s biggest aluminum smelter.

MORE FROM Business & Economy