2010 was a record-breaking year for state-owned aluminium giant, achieving gross sales revenue of AED 8.670 billion and record net profits of AED 2.129 billion
The ordinary Annual General Meeting chaired by H H Sheikh Hamdan bin Rashid Al Maktoum (Deputy Ruler of Dubai, UAE Minister of Finance and Chairman of the DUBAL Board), attended by DUBAL Board of Directors and Mr Khalifa Hassan Al Dabbous representing Investment Corporation of Dubai (ICD) announced DUBAL's achievements for 2010.
Gross sales revenue grew 25.8 per cent year-on-year (2009: AED 6.890 billion).
Net profits grew 101.8 per cent year-on-year (2009: AED 1.055 billion).
Since its inception in 1979, DUBAL's production capacity has grown more than seven-fold to more than one million metric tonnes per annum.
Each year, the company exports more than 88 per cent of its annual production to more than 300 customers in at least 45 countries around the world.
UAE Nationals hold 70 per cent of senior management positions, with the overall proportional representation of UAE Nationals being 15 per cent.
Dubai, United Arab Emirates: True to form, 2010 was again an excellent year for Dubai Aluminium Company Limited ("DUBAL") -- the entirely state-owned enterprise whose Jebel Ali operation ranks among the world's largest single-site primary aluminium smelters. "Having achieved record gross sales revenue of AED 8.670 billion (compared to AED 6.890 billion in 2009), with record net profits of AED 2.129 billion equating to approximately 24.6 per cent of gross sales revenue (2009: AED 1.055 billion), DUBAL's status has been maintained as one of the most profitable corporations in the Emirate of Dubai's portfolio. The company's leading position is further affirmed by compound annual revenue and profit growth rates from 1995 to 2010 of 11.0 per cent and 7.9 per cent respectively," says H H Sheikh Hamdan bin Rashid Al Maktoum (Deputy Ruler of Dubai, UAE Minister of Finance and Chairman of the DUBAL Board), who also proudly acknowledged the high safety and environmental performance standards maintained by DUBAL.
DUBAL's 2010 results were revealed by Abdulla J M Kalban (President & Chief Executive Officer), during the company's General Assembly Meeting for 2010, held at DUBAL's Jebel Ali site on Tuesday 9 March 2011 and attended by H H Sheikh Hamdan bin Rashid Al Maktoum (Deputy Ruler of Dubai, UAE Minister of Finance and Chairman of the DUBAL Board), H E Ahmed Humaid Al Tayer (Vice Chairman of DUBAL) and members of the DUBAL Board of Directors. According to Kalban, DUBAL's achievements in 2010 reflect a combination of higher production and sales volumes, plus the benefit of higher aluminium prices, coupled with sustained focus on controlling the cash conversion cost, the latter despite increasing pressure on the purchase prices of raw materials. "Reducing budgeted capital expenditures and maintaining tight working capital control also contributed significantly to achieving a improved cash generation from operating activities and free cash flow. This, together with optimized gearing, ensured that DUBAL's balance sheet remained strong," says Kalban.
Widely acknowledged as the UAE's industrial flagship, DUBAL began operating in 1979 with an initial production capacity of 135,000 metric tonnes per annum. The company has since undergone a series of major expansion projects, together increasing the production capacity of DUBAL's Jebel Ali plant more than seven-fold to more than one million metric tonnes per annum. The use of advancing in-house developed technologies that offer improved productivity and other operating benefits, together with higher amperage levels and efficiency improvements, enabled DUBAL to produce 1,002,014 metric tonnes of hot metal in 2010. "This remarkable achievement not only marked the first time that DUBAL surpassed the one million metric tonne hot metal milestone in the company's 31-year history, but also represented growth of 4.9 per cent on the 955,404 metric tonnes produced in 2009," continues Kalban. "Going forward, ever-higher hot metal production is expected each year, driven by further productivity gains."
Moreover, both cast product and sales volumes exceeded one million metric tonnes for the second consecutive year, with DUBAL selling 1.5 per cent more metal in 2010 than in 2009. These statistics highlight the company's ranking as a major supplier of premium quality, highest purity aluminium to the global market, especially as more than 88 per cent of DUBAL's annual production is exported to more than 300 customers in at least 45 countries in various parts of the world.
DUBAL's performance also continued to improve in terms of employee safety. The company's total recordable injury frequency rate ("TRIFR", comprising lost time injuries, restricted work and medical treatments per million man-hours) decreased from 4.27 in 2009 to 4.21 by the end of 2010 -- an improvement of 45 per cent over the last three years. Overall, a 91 per cent drop in lost time injuries ("LTIs") has been achieved since 2004.
Importantly, DUBAL met or outperformed virtually all measures relating to the environment in 2010, specifically with regard to overall perfluorocarbon ("PFC") emissions, which have dropped by 74 per cent compared to 1990 levels. DUBAL's total fluoride emissions continued to decrease throughout 2010, resulting in an overall decline of 29 per cent since 2000.
With regard to occupational health, DUBAL achieved zero lost work days due to heat stress for the fifth year in a row and none due to heat rash for the fourth consecutive year.
Undoubtedly a source of national pride, DUBAL is a strong proponent of Emiratization -- more than 70 per cent of employees at senior management level are UAE Nationals, while 14.2 per cent of the total DUBAL workforce comprises local employees. "Our aim is to be a clear leader by example," states Kalban. "Accordingly, DUBAL has spear-headed the quality movement in the UAE, adheres to international operating standards in all aspects of its business operations and is an employer of choice in Dubai."
Kalban also reported to the DUBAL Board on the progress of the company's investment projects. The most notable of these is the Emirates Aluminium Company Limited ("EMAL") smelter development project in the Al Taweelah area of Abu Dhabi, a joint venture in which DUBAL is a 50 per cent shareholder with Mubadala Development Company. Commissioning of all 756 reduction cells in EMAL Phase I was completed in record time by the end of 2010, enabling the plant to operate at its full capacity of 740,000 metric tonnes per annum from 2011 onwards.
In terms of foreign investments to secure raw material stocks, good progress was made during 2010. DUBAL is currently engaged in four strategic upstream bauxite/alumina projects that are in various stages of development, in Brazil, Republic of Guinea, Cameroon and India respectively.
The performance of DUBAL's proprietary DX Reduction Technology continued to advance throughout the year: by February 2010, the amperage of the 40 DX Reduction Technology cells at DUBAL's Jebel Ali site had been increased to 370 kA, while parallel efforts enabled a lowering in energy consumption, higher efficiency operating parameters and new emissions benchmarks. As of October 2010, the pots have been running at 380 ka, with similar performance parameters as achieved at 370 kA. "The statistics clearly demonstrate the outstanding performance capabilities of DX Reduction Technology at industrial scale and put it at the level of the best available technologies," says Kalban. "DX Reduction Technology has also been installed in the EMAL Phase I potlines, where the cells are performing as impressively as at DUBAL."
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About DUBAL
Commissioned in 1979, Dubai Aluminium Company Limited ("DUBAL") today operates one of the world's largest single-site primary aluminium smelters. The DUBAL complex comprises a one million mtpa smelter, a 2,350 MW power station (at 30°C), a large carbon plant, casthouse operations, a water desalination plant, and other facilities.
High quality aluminium products are made in three main forms: foundry alloy for automotive applications; extrusion billet for construction, industrial, transportation and forging purposes in automotive industries; and high purity aluminium for electronics and aerospace. More than 300 customers are served in at least 45 countries predominantly in the Far East, Europe, the ASEAN region, the MENA region, and North America.
The company holds ISO 9001, ISO/TS 16949, ISO/IEC 27001, ISO/IEC 20000, ISO 14001 and OHSAS 18001 certification.
About 4,000 skilled operators, tradesmen, administrative staff, technicians, professionals and managers are employed. Some 15% of the total workforce comprises UAE nationals (over 70% at Senior Management level).
DUBAL also owns 50% of Emirates Aluminium Company Limited ("EMAL"), a green-field smelter development at Al Taweelah, Abu Dhabi; and has invested in joint venture bauxite/alumina projects in Brazil, Cameroon, India and Republic of Guinea.
© Press Release 2011
