A copper rod manufacturing facility projected to cost more than Dh100 million will be established at Musaffah.
A memorandum of understanding ( MoU) was signed in Sydney by Kembla Wire & Rod, an Australian company, and Emirates Link Group yesterday, company representatives said.
The MoU regarding the production of continuous cast and rolled copper rod comes as a UAE ministerial delegation tours Australia.
The plant will be the first of its kind in the UAE and the third in the Gulf, they said. With an annual capacity of 165,000 tonnes, it will be the largest in the Middle East, they added.
Copper rod is used in the manufacture of electrical cables and conductors. Production from the plant should be sufficient to meet most of the aggregate demand for copper rods in regional markets including the UAE, Oman, Kuwait, Jordan, Lebanon, Syria and Qatar.
Cable manufacturers in these countries who currently import copper rods will find it more convenient and cost effective to source their needs through Abu Dhabi, they said.
The parties to the MOU expect production and market distribution of copper rod from the new plant to start by early 2006. The plant’s production will enhance the UAE’s GDP by Dh175 million annually, officials said.
Emirates Link Group is affiliated with the Emirates International Investment Corporation, one of the UAE’s biggest investment organisations.
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