Dubai, April 16, 2015
International industry players expect aluminium industry market worldwide to double within the next 10 years. Optimistic on growth prospects, participants at the ALUMINIUM MIDDLE EAST 2015, which concluded today, said with projects worth billions of dollars in the pipeline, the Middle East is among the key markets offering numerous attractive opportunities they are keen on tapping.
The three-day ALUMINIUM MIDDLE EAST 2015 2015, organized by Reed Exhibitions witnessed many international companies announcing their expansion plans in the region, particularly the UAE.
Participants at the expo said maintaining prices amid oversupply was among the key challenges and said new technology was playing a major role in generating cost efficiencies as well as driving demand.
"I believe the market will continue to grow every year at 10 per cent and will double in the next 10 years. We expect a consistent growth even amid cyclical economic changes worldwide," said John R. Knapp, President/CEO, US-based Mid-Mountain Materials, manufacturer of engineered thermal insulation barriers and seals that provide environmental protection, emissions control, and energy conservation.
The industry participants at the said exhibition they were particularly keen on tapping into opportunities arising in the Middle East.
According to a report by EC Harris, 117 major construction programs, worth over $1 trillion are planned for completion by 2030 in the region.
These projects involve a combination of retail, real estate, leisure, health, education asset development and also transport, communication and supporting social infrastructure systems.
"With numerous projects in the pipeline, the Middle East is clearly a high growth market offering tremendous opportunities to industry worldwide," said Suneel R. Mardia, CEO, MTLEXS.COM, which is India's first non-ferrous e market place.
Experts said that the Middle East, along with being the most attractive business ground due new projects worth billions of dollars, also gives a high cost advantage to manufacturers on account of low energy costs.
"Low energy costs in the Middle East give a strong cost advantage to the manufacturers, and its here to stay. As more manufacturers keep setting base and expanding in this region, it increases opportunities for us, we will be making inroads to sell our products," said Knapp from Mid-Mountain.
Tony G. Carroll, sales and development executive with Mid-Mountain Materials, said the affordable cost of power in the UAE has boosted growth in the aluminium sector.
Big construction projects, which cost more than $1 billion, are due to peak in the UAE by 2016, according to EC Harris study, which found that projects worth $40 billion will be due for delivery in 2016. Participants in the ALUMINIUM MIDDLE EAST 2015 said they are keen to explore new opportunities in the region.
Tecalex, a leading Spanish company engaged in designing and manufacturing equipment for aluminium extrusion, said it is planning to set up an extrusion plant in the UAE.
"We are also finalizing plans to expand our operations in Saudi Arabia, Qatar and Oman. The expansion plan includes two more plants in Saudi Arabia, a second plant in Qatar and two additional extrusion units in Oman," said Miguel-Angel Calvo, Senior Sales Manager for Latin America, Middle East and Africa, Tecalex, which is participating in the ongoing Aluminium Middle East 2015 exhibition.
The plants in Saudi Arabia, Qatar and Oman cater to the needs of the construction industry. However, the proposed plant in the UAE can also be for high-tech industrial products, particularly for the aviation industry.
"We are also open to a similar plant here in the UAE, in view of the presence of some top aircraft makers," Miguel-Angel added.
The plants are set up in technological collaboration with local owners.
The Middle East and Europe are top markets for Tecalex. As the aluminium industry is well developed in the Middle East, particularly in the Gulf, Tecalex hopes to cash in on the emerging growth, he said.
UK-based Morgan Advanced Materials, a world leader in advanced materials technology, will set up a new fiber manufacturing plant, with a capacity of 5,000 metric tonnes in Khalifa Industrial Zone Abu Dhabi (KIZAD).
The new plant is a part of its expansion strategy to cater to growing demand and opportunities from the Middle East region where it has a strong customer base.
Industry players, however, said that maintaining prices in the over supplied aluminium market is among the key challenges.
"Keeping the price up is a major challenge," said John Knapp from Mid-Mountain Materials.
Amid over-supply, lowering production costs is a major focus among manufacturers and low energy cost drives them to this region, aluminium industry players said.
The market prospects remain bright and new technology is also playing a major role in bringing cost advantage to the manufacturers.
"Using new technology, they can save on labour costs. Also, producing high quality products at the same cost has been made possible with new technology," added Mardia of MTLEXS.com
"It is thanks to technology that aluminium, which has inherent properties that no other metal can match, is now making inroads in to almost every sector, thereby increasing demand," he added.
After a three-day run at the Dubai International Convention and Exhibition Centre (DICEC), the fourth edition of the biennial ALUMINIUM MIDDLE EAST concluded on Thursday on a successful note thus galvanizing the industry players with the prospects of new business, networking and collaboration in various domains.
"We are pleased with the exceptional industry response to the ALUMINIUM MIDDLE EAST 2015. The event has attracted the top global suppliers and regional attendance of key buyers, officials and experts have highlighted very positive growth indicators for this industry," said Daniyal Qureshi, Group Exhibition Director at Reed Exhibitions Middle East, organizers of the aluminium industry B2B platform.
Organized by Reed Exhibitions Middle East, the three-day biennial exhibition attracted nearly 200 exhibitors from 30 countries. Germany, Italy and China put up country pavilions at the exhibition which attracted over 4,000 industry professionals from 75 countries.
The Middle East's largest-ever aluminium industry platform took place against the backdrop of the aluminium industry witnessing a new level of extraordinary growth and the Middle East consolidating its position as a powerhouse of the world's aluminium industry. The Middle East region offers immense growth opportunity for the global industry players. The UAE is the the world's fourth largest aluminium producer, accounting for over 50 per cent of the Arabian Gulf's aluminium production.
The event took place on a gross exhibition space of 7600 square metres. The Innovation Podium, a key feature of the exhibition, attracted industry professionals to gain insights into the latest technology and trends in the industry and how the industry is shaping now and in the future. Several new products and services were unveiled by the exhibitors during the show.
Under the Aluminium Business Connect programme, the organizers arranged over 500 meetings with the exhibitors for 130 buyers from 21 countries who registered with them earlier. The buyers came from near and far countries - GCC, Middle East, Subcontinent, Europe, Russia, UK and the US.
The ALUMINIUM MIDDLE EAST 2017 will be held from May 27 to 29, the organizers announced.
His Excellency Saeed Mohammad Al Tayer, Managing Director & Chief Executive Officer of Dubai Electricity and Water Authority (DEWA) and Vice Chairman of Emirates Global Aluminium (EGA), inaugurated the ALUMINIUM MIDDLE EAST 2015. The exhibition was held under the theme, Forging Connections, Building Possibilities. The exhibition has emerged as a must-attend event for networking, building professional relationships, identifying investment opportunities and getting acquainted with the latest technologies and best practices from around the world.
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© Press Release 2015