Friday, Dec 23, 2011
Gulf News
Dubai Dubai Aluminum (Dubal) will keep its eye on potential acquisitions but is not planning to raise capital from the market in 2012, a top company executive said yesterday.
Abdullah Kalban, president and chief executive of Dubal, told Gulf News that the company was upbeat about its prospects for next year but was taking a wait and see attitude.
“Dubal has no immediate plans to issue bonds. For the time being, I don’t see it,” Kalban said. “Maybe if things start to materialise on some of our projects, then it’s possible and the company would be open to potential acquisitions.”
His comments came at a press conference to announce the signing of a technology licensing agreement with Emirates Aluminium (Emal), under which Dubal will provide technology to Emal’s Al Taweeleh project.
Phase II of the Emal project aims to increase production from 800,000 tonnes by the end of 2012 to more than a million by the end of 2014.
New techonology
The new technology, known as DX+, will help Emal meet its targets, said Fadil Al Mazroui, the company’s chief executive.
Commenting on the ongoing project, Yousuf Bastaki, Emal’s vice-president, said phase II is on track.
“Overall progress is estimated at five per cent for construction work,” he said.
He added that Emal hoped a growing demand for aluminium would help the company increase its overseas customer base in 2012.
“We are planning to increase our current number of clients. Ninety per cent of Dubal’s and Emal’s annual production is exported globally in the form of ingots, billets, sheet ingots and sow,” he said.
Bastaki said the global demand for aluminium is estimated at 44 million tonnes annually and the UAE’s capacity is seven per cent of the worldwide demand.
In November, Dubal said it expected a rise of up to 35 per cent in its 2011 profits and has reserves to last until 2017.
“Our expectation is that Dubal’s profit will rise between 30 and 35 per cent compared to 2010,” he said and added that Dubal’s assets were valued at $7 billion (Dh25.7 billion) while in 2010 its net profit more than doubled to Dh2.13 billion.
Aluminium
We are planning to increase our current number of clients. Ninety per cent of Dubal’s and Emal’s annual production is exported globally.”
Yousuf Bastaki
Vice-president, Emal
By Shehab Al Makahleh?Staff Reporter
Gulf News 2011. All rights reserved.
