EMAL to be key supplier for 150,000 tons per annum plant

June 28, 2009 (Abu Dhabi) - Abu Dhabi Basic Industries Corporation (ADBIC) and Bahrain's Midal Cables Limited announced the establishment of a $100 million aluminum rod and conductor plant during the signing of their joint venture agreement.  The signing serves to reinforce the strategic partnership formed by the companies last year. The joint venture agreement was signed by Jamal Al Dhaheri, Senior Vice President for Metals at ADBIC, and Hamid Al Zayani, Managing Director of Midal Cables.

Construction of the aluminum plant will begin in the first quarter of 2010 at Khalifa Port and Industrial Zone in Taweelah. The state-of-the-art plant will produce 150,000 tons per annum of aluminum products, including aluminum rod and aluminum electrical overhead conductors, to serve as feedstock to further Abu Dhabi's downstream industries and to be exported internationally. 

Speaking on behalf of ADBIC, Al Dhaheri said, "The establishment of this strategic partnership with Midal will be the first major milestone towards the expansion of Abu Dhabi's downstream manufacturing capacity in the metals sector. This partnership brings together the technical expertise of one of the world's largest manufacturers of aluminum rod and conductors with the experience of one of the leading industrial investment and development companies in the region. "

Al Zayani went on to add, "This joint venture is strategically important for Midal Cables. The rapid industrial growth in the UAE and GCC region requires world-class expertise in the field of aluminum production. Working with a leading investment and industrial development company like ADBIC further drives the growth of this key sector."

The establishment of the aluminum plant is the first step towards the development of ADBIC's upcoming metals cluster, which will play a fundamental role in expanding Abu Dhabi's downstream manufacturing capacity in the metals sector. Strategically located between Abu Dhabi and Dubai, the cluster will focus on base metals such as aluminum, steel and copper.

ADBIC and Midal Cables also today announced the signing of a Memorandum of Understanding (MoU) with Emirates Aluminium Company Limited (EMAL) aimed at sourcing molten aluminum, the plant's main feedstock, from their new smelter. By the second quarter of 2011, ADBIC's plant will be ready to receive its first batch of molten aluminum from EMAL.

 "EMAL will play a fundamental role in supporting the development of ADBIC's metals cluster," said Al Dhaheri. "This partnership not only helps to drive ADBIC's contribution to Abu Dhabi's industrial diversification, but also leverages EMAL's planned aluminum upstream production capacity, which will commence at 700,000 tons per annum in the first quarter of 2010."

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About Abu Dhabi Basic Industries Corporation (ADBIC):
Abu Dhabi Basic Industries Corporation (ADBIC) is an industrial development and investment company created to facilitate the expansion of sustainable industry in Abu Dhabi, the capital of the United Arab Emirates. Established in 2007, ADBIC is wholly-owned by the Abu Dhabi Government's General Holding Corporation (GHC) and focuses on the base metals (aluminum, steel and copper), petrochemical and other industrial sectors.

ADBIC acts as a catalyst for building a globally-competitive core of commercially-viable industrial activity through public-private partnerships across the industrial value chain, linking upstream, midstream and downstream sectors. Our current investments include: Emirates Steel Industries, the largest integrated steel plant in the UAE, and Abu Dhabi Polymers Park, the first industrial zone in the UAE dedicated to the plastics conversion industry.

About Midal Cables:
Midal Cables - Bahrain is a market leader in the development and production of aluminum rod and electrical conductors. Established in 1977 with an Australian technical partner, Midal Cables has, over the past thirty years, undertaken its own research and has been continuously developing and marketing its wide range of products worldwide.

About Emirates Aluminium (EMAL):
EMAL is a joint venture (JV) between Dubai Aluminium Company Limited (DUBAL) and Mubadala Development Company (Mubadala) and was established in February 2007 to construct what will become the world's largest single site aluminium smelter complex. The project will be built in two phases and utilise Emirati-developed technology. At the end of phase one in 2010, EMAL will produce 700,000 tonnes of aluminium per annum and 1.4 million tonnes annually at the end of phase two.

© Press Release 2009