Frost and Sullivan perspective on Maaden-Alcoa JV in KSA

According to Frost and Sullivan, Saudi Arabian Mining Company (Ma'aden) had originally planned to have the sheet mill for can sheets only. The announcement of  a joint venture with U.S. firm Alcoa to add a new aluminium production line is expected to meet the local demand in the Gulf Cooperation Council (GCC), which is currently met by local rolling mill Garmco, Bahrain.

There is a big gap between the supply and market demand in the GCC for paint, foil  stock and the new mill planned will help to rectify the gap.

Further, the new line will instigate the development of various downstream industries from the envisaged products of Maaden's new mill line.

Notable products that have good market in Saudi are foil, sheet coating, sign boards, slugs, chequered plate, boat and auto sheet body, electronic items and capacitors.

Hence, the new plan of products will increase value addition to aluminium sheet through foil products which have great demand of around 100,000 tonnes and most of  it is catered by imports.

More downstream industries are expected to create additional local employment opportunities ensuring utilisation of the local natural abundant energy to value addition to the base metal and bring in new technologies to Saudi Arabia.