EMAL, the $5.7 billion joint venture is grazing new horizons now. It is already set on producing 750,000 tons of aluminum this year. EMAL came into existence in Feb 2007, and now would be constructing the World's Largest Single Site Aluminum Smelter Complex. The EMAL Board approved a $4.5 billion investment that is seeking to produce about 1.3 million metric tons a year by the end of 2014 which will be the double of the Al-Tawaeelah based facility. The aluminum complex, a 6sq km site in the Khalifa Port Industrial Zone in Al Taweelah, half way between Abu Dhabi and Dubai.
As the agreement has been settled, Export-Import Bank of the United States and (Coface) will provide finance for the project. US will provide the project with Dh1.7 billion in funding; Coface will provide cover for a Dh800 million bank-funded term loan facility.
“These agreements speak of the strength of this project and the soundness of EMAL’s long term business plan,” said Saeed Al Mazrooei, president and chief executive officer of EMAL.
“We would not have been able to achieve this without the teamwork and support provided by our employees, shareholders – Mubadala and Dubai – and, of course, the UAE government,” he noted.
“These agreements mark the realization of a significant portion of our project financing plan, with relatively low cost funding secured over a long tenure, which in today’s market illustrates the strength of the EMAL project and the sponsors as well as the projects importance to the industrialization strategy of the UAE” said Bill Campbell, EMAL chief financial officer.
EMAL’s President and Chief Executive Officer are very confident and say “In just three years, EMAL has become a global competitor in the aluminum industry. Phase II will equip EMAL to grow the global customer base we have already established. It is also a clear demonstration of the confidence we have in the future market for aluminum and in EMAL to deliver to our customers,"
Dr, Mohammed Amerah, and Abu Dhabi based economist has great words for EMAL's expansion as well. He commented Gulf News saying, the expansion would not only be beneficial for EMAL but will also help create more jobs in UAE nationals.
He further added that it's not just the growing of EMAL but it will help it penetrate new markets. It will also make EMAL in a position to help existing markets. Furthermore he explained that this will result in export revenues, which will flow back in UAE economy.
Sajith Kumar P.K., chief executive officer of Dubai-based commodities trading firm JRG International commented to gulf news about the expansion as well. He said the expansion will help the aluminum requirements of the countries that are art of the GCC. Since the need of these countries is growing.
EMAL will help boost the infrastructure development. The EMAL phase II project is going to be the best there is in expanding and entailing the construction of a new pot line within the EMAL complex.