During 1999 - 2000 , GCC investments in industrial projects totaled to US$ 13.44 billion, out of which US$6.01 billion (ie.4.5% of the total investment ), was invested in Aluminium and other Base Metal industries. It is estimated that gross investment for Aluminium industries in the GCC is US$ 5 billion. The trend predicts a steep increase during 2005 - 2010 in the Production of Aluminium to 10.5% and consumption rate to 4%.
Alcan Inc.'s Senior Vice President and President and Chief Executive Officer, Alcan Primary Metal Group, Cynthia Carroll, said at a conference that the Company is well positioned for sustainable business growth in the Middle East Gulf region and identified Alcan's participation in the proposed Sohar aluminum smelter project, located in the Sultanate of Oman, and the adoption of the its leading edge aluminum smelting technology package and engineering solutions by others in the region as critical examples.
"The Sohar aluminum smelter project is an important example of how the Middle East Gulf region is strategically turning the challenges of the aluminum industry into sustainable business opportunities," said Carroll.
In February last year, Alcan signed a Shareholders' Agreement for the development of the proposed 350 kt/year smelter project. This project is the first time that proven AP35 Technology will be used in a new smelter. A second potline of similar capacity is planned to be established in the future. The smelter will provide a major economic boost to the Al Battinah Region of Oman.
Meanwhile the other giant in the Gulf, Aluminium Bahrain (Alba) said its production in 2005 jumped to 746,000 tonnes, up from 530,000 tonnes in 2004. Alba's deputy chief executive Mahmood Daylami has informed that 2006 production is expected to increase to 830,000 tonnes.
Daylami said the firm was still mulling a new production line. 'The government is studying this ... but no certain decision has been taken yet,' Daylami added.
In September, Alba launched a $1.7 billion production line, its fifth, raising its output capacity by 307,000 tonnes per year to 837,000 tonnes.
Alba is 77 per cent owned by the Bahraini government, 20 per cent by Saudi Arabia and three percent by the German group Breton Investments.
Given the type and the large number of major projects coming up all over the Gulf, the focus of developers is now towards having improved standards. This clearly means that the region is moving slowly towards higher quality. Leading aluminium systems suppliers in the region are focusing on quality and investing in the right people to execute these landmark projects.
Another important development in the sector is the growing interest in thermal-break systems, especially in the UAE where the Dubai Municipality is leading the drive towards more energy-efficient buildings. Bahrain is reported to be thinking of introducing tougher thermal insulation standards for building, including glazing and related aluminium systems.
With the growing tendency to develop towers of 30 storey plus structures, the industry is faced with new challenges where standard products used on lower rise buildings are unsuitable for such towers. These projects require specialize engineering and know how and the development of a custom designed system to cope with the requirements such as wind loading, structural movement, and defections, among others.
Developers and architects have begun to realize that roper design and structural engineering works should be done ahead of time for such facades. The projects can no longer be designed architecturally and be left to aluminium subcontractors for implementation. They require a special and systematic approach in studying the different forces include wind-tunnel testing, mock-up tests to validate performance and data. It costs substantially more to rectify poor or badly designed systems than getting it right in the first place."
The market is also pushing for the establishment of a body that will monitor and govern standards in the aluminium industry. Industry sources reveal that it is no longer possible to develop such projects without proper unified codes and standards to govern safety, quality, and reliability.
The other giant Dubai Aluminium meanwhile has set its sights overseas. It has tied up with India's biggest construction firm Larsen & Toubro Limited (L&T), to set up an integrated Bauxite Mining cum alumina refinery project in Orissa.
The project involves setting up of a 1.4 million tonnes per annum (mtpa) world class alumina refinery costing US $ 1 billion plus, bauxite mine and associated infrastructure including a captive power plant, port facility, township and other utilities. L&T already has development rights to bauxite deposits and prospecting in Orissa. The refinery is expected to be commissioned in 2009.
Abdullah Kalban, Director Operations of DUBAL informs that a 10 year strategy is likely to be ready by the end of March.
The world aluminum market has seen record prices this year and unprecedented growth. There is a growth of 3 to 4 per cent in the world aluminium market and that means about 1.5 million tonnes of new aluminium should come to the market and this offers scope for two or three new smelters.
Kalban is confident that demand and price will remain strong for some more years.
A price range between $1,650 and $1,850 is healthy is being considered acceptable.
"We want Dubal to be the largest single-site smelter in the world with a strong international market presence," says Kalban.
"At present we have a 3 per cent share of the global aluminium market. There are different opportunities within the region and outside. We have a very ambitious plan."
Dubal has more than 300 customers in 42 countries. "We are marketing Dubal well and are proud that we have a good reputation. We would like to share our expertise and technology internationally and bring our leadership qualities to other parts of the world," says Kalban.
About 7 per cent of Dubal's production is supplied to the domestic market, while the company's biggest single market is Japan, which takes 23 per cent of the company's production. Europe as a whole accounts for 20 per cent (120,000 tonnes); the US imports 7 per cent of Dubal's production and the Middle East 10 per cent. Other key markets are Korea, Taiwan, Indonesia and Malaysia.
Aluminium, its capacities and its price is surely headed north as structures move into the modern architecture facades.
Construction World 2006
