Dh220 million aluminium plant opens at Kizad
Ducab Aluminium Company, the latest company to join the UAE's fast growing aluminium sector, marked its official opening at Khalifa Industrial Zone Abu Dhabi (Kizad) on Wednesday.
Sheikh Hamed bin Zayed al Nahyan, Chief of the Abu Dhabi Crown Prince's Court, inaugurated the Dh220 million joint venture between Ducab, the UAE-based leading manufacturer of high-quality cables and cabling products, and Senaat, one of the largest holding companies in the UAE's industrial sector.
Sheikh Hamed stressed that industry has become a significant pillar of the UAE national economy. He said economic diversification is essential to maintain the pace of comprehensive development and ensure strong growth in the future.
Ministers and other senior leaders and executives as well as customers attended the opening ceremony.
In a statement, DAC said the joint venture embodied the efforts to expand the development of the industrial sector in the UAE by embracing the partnership model that combines national industrial sector organisations in Abu Dhabi and Dubai. "DAC cooperates with Emirates Global Aluminium (EGA) to supply the new manufacturer with molten aluminium in a unique collaborative model to promote partnership strategies among national institutions."
DAC said it would aim to strengthen the UAE's industrial supply chain in line with the national strategy to enhance industrial investment opportunities across the country. The company will manufacture 50,000 metric tonnes of high quality electrical grade aluminium rod and overhead conductor per annum once it reaches its full capacity supplying to both local and international customers.
Eng. Jamal Salem Al Dhaheri, Chairman of Ducab and Chief Executive Officer (CEO) of Senaat, who has assumed the role of Chairman of DAC, said the launch of the plant extends the UAE's industrial capabilities and addresses the growing aluminium market globally.
"DAC has signed a long-term partnership with its neighbour EGA for the supply of molten aluminium to the facility along Kizad's 'Hot Metal Road.' With this special partnership with EGA, we are now positioned to offer tailored products for the electrical supply chain, optimizing local resources in line with the Abu Dhabi Economic Vision 2030. Moreover, the new company will substitute substantial imports of aluminium rods and overhead lines into the UAE, and help build a competitive edge for 'Made-in-UAE' industrial products," said Al Dhaheri.
"Ducab Aluminium Company marks an important milestone in the UAE aluminium sector and adds to a growing number of downstream ventures in aluminium being developed in Kizad as part of the UAE's ambitions to further diversify the national economy. Proximity to Port Khalifa is a real advantage for this export-orientated business. DAC has already signed rod supply contracts to service customers across the GCC, India, Lebanon, North America and select markets in Africa. Further expansions are also being planned for Latin America and Europe as DAC targets export sales of over Dh300 million in 2018," said Dr. Ahmad bin Hassan Al Shaikh, Vice-Chairman of Ducab and DAC Board Member.
DAC manufactures Electrical Conductive (EC) grade aluminium and aluminium alloy rods, wires, and bare overhead conductors. The activities at DAC will complement Ducab's existing portfolio, which has seen the 100 per cent UAE-owned company become a global leader in the development, design, manufacture, marketing and distribution of copper and aluminium wire and cable products.
With five manufacturing facilities in the UAE including DAC, Ducab's products are currently used in the energy, general construction, oil & gas, industrial, defence, transport, marine, mining and other specialty industry verticals.
Abdulla Kalban, EGA's Managing Director and Chief Executive Officer, said the aluminium industry with EGA at its heart has long played an important role in the economic diversification of the UAE, creating jobs and economic opportunity. "We welcome the official inauguration of DAC, and look forward to reliably supplying them with the metal they need to make their products in the years to come."
The UAE aluminium sector as a whole employs some 30,000 people, making it the largest employer among the UAE's energy intensive industries.
Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said the proximity of the DAC facility to major partners Emirates Global Aluminium, which is also based in Kizad and other anchor tenants in the aluminium cluster, is a clear advantage in terms of access to raw materials. "We look forward to welcoming more industrial and logistics companies to set up at Kizad and Khalifa Port Free Trade Zone to maximize down, mid and upstream availability within specialized clusters at Kizad." - email@example.com
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