Aluminium drives modern manufacturing in the Gulf

As GCC aluminium production is expected to hit the five million tonnes mark by the end of this year, downstream factories in the GCC countries are racing to acquire the state- -of-the-art machines and latest equipment.

Since aluminium production started in the region in 1971, there have been significant developments in the number and variety of downstream aluminium industries, such as extrusion, rolled products, wires and cables that cater for the needs of regional and international markets.

The list of major GCC downstream players includes Gulf Extrusions and Al- Hamad Aluminium Extrusions in the UAE, Gulf Aluminium Rolling Mill (GARMCO) and Midal Cable in Bahrain, Alupco and Al-Taisser in Saudi Arabia and Oman Aluminium Rolling Company (OARC) in Oman.

Around 70 per cent of all primary aluminium produced in the GCC is exported in various shapes and alloys, while 30 per cent is used by downstream industries, half of which (15 per cent) is re-exported to international markets, according to Gulf Aluminium Council.

Serving regional and international automotive industries, extrusion accounts for 450 KT out of the Gulf's annual secondary production of 1.5 MT. Extrusion production is expected to increase to 520 KT this year as plants in Abu Dhabi and Qatar get operational.

Wires and cables is the second largest consumer of local aluminium in the Gulf with 400 KT annually, distributed among Bahrain, Saudi Arabia and Oman.

The current roll production of around 200 KT a year produced in Bahrain, Saudi Arabia and Oman, will increase to 750 KT with the completion of new plants in Oman and Saudi Arabia.

Given the importance of the aluminium industry for Gulf economies and the availability of the metal as a raw material, all the GCC countries with primary aluminuim production are actively pursuing the policy of establishing more downstream industries, to utilize aluminium as a raw material to produce more value-added products, create jobs and encourage more inward investments.

Aluminium industry contributes significantly to the region-wide efforts to diversify economies beyond oil and gas. With widening scope, facilities and capabilities, the sector has helped increase foreign trade, create more jobs and expand regional economies.