ABU DHABI: Abu Dhabi Basic Industries Corp (ADBIC) and Bahrain's Midal Cables Ltd. announced yesterday the establishment of a $100 million aluminum rod and conductor plant at Abu Dhabi's Khalifa Port & Industrial Zone in Taweelah.
The project, a joint venture, will begin operations in the first quarter of 2010. The state-of-the-art plant will produce 150,000 tons per annum of aluminum products, including aluminum rod and aluminum electrical overhead conductors, to serve as feedstock to further Abu Dhabi's downstream industries and to be exported internationally. The joint venture agreement was signed by Senior Vice President for Metals at ADBIC Jamal Al-Dhaheri, and Managing Director of Midal Cables Hamid Al-Zayani.
"The establishment of this strategic partnership with Midal will be the first major milestone toward the expansion of Abu Dhabi's downstream manufacturing capacity in the metals sector. This partnership brings together the technical expertise of one of the world's largest manufacturers of aluminum rod and conductors with the experience of one of the leading industrial investment and development companies in the region", Al-Dhaheri said in a statement.
"This joint venture is strategically important for Midal Cables. The rapid industrial growth in the UAE and GCC region requires world-class expertise in the field of aluminum production. Working with a leading investment and industrial development company like ADBIC further drives the growth of this key sector," said Al-Zayani.
The establishment of the plant is the first step toward the development of ADBIC's upcoming metals cluster, which will play a fundamental role in expanding Abu Dhabi's downstream manufacturing capacity in the metals sector. Strategically located between Abu Dhabi and Dubai, the cluster will focus on base metals such as aluminum, steel and copper.
ADBIC and Midal Cables also announced yesterday the signing of a Memorandum of Understanding (MoU) with Emirates Aluminum Company Ltd. (EMAL) aimed at sourcing molten aluminum, the plant's main feedstock, from their new smelter. By the second quarter of 2011, ADBIC's plant will be ready to receive its first batch of molten aluminum from EMAL.
