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Emirates Aluminium (EGA-Taweelah) is the anchor tenant of Kizad’s aluminium cluster

Emirates Aluminium (EGA-Taweelah) is the anchor tenant of Kizad’s aluminium cluster



Zeal to diversify yields gains

Abu Dhabi’s industrialisation in taking wings thanks to far-sighted initiatives implemented by Abu Dhabi Ports with support from institutions in the emirate

October 2015

Manufacturing and logistics continued to make gains this year in Abu Dhabi with metals reinforcing their status and both aluminium and steel helping hasten the diversification process.

Abu Dhabi Ports has partnered with key institutions such as Senaat and the Industrial Development Bureau of the Department of Economic Development to support investments, substitute imports and drive self-reliance and exports with the aim of giving the emirate a new reputation in general industry on the other side of the oil and gas sector.

The dedicated aluminium industry cluster at the Khalifa Industrial Zone Abu Dhabi (Kizad), a subsidiary of Abu Dhabi Ports, is receiving pro-active support from Emirates Global Aluminium whose Emal is an anchor tenant there.  Emal’s casthouse operations include a Liquid Metal Transfer facility to facilitate the transfer of molten metal to adjacent industries via a purpose-built ‘hot metal road’. The receiving industries will benefit from eliminated shipping costs, significantly reduced energy requirements there being no need to re-melt cold metal, and lower carbon dioxide emissions.

One of the good tidings from Kizad is that its aluminium cluster is starting to take shape. Several downstream aluminium businesses have already registered and begun developing their facilities including a specialised automotive extrusion plant, a rodding mill, a rolling mill, a spent pot lining (SPL) recycling facility, and a super-high purity segregation industry. Emal expects to make its first liquid metal shipment within the Kizad cluster in 2016.

The rodding mill is the project of Ducab Aluminium Company. The facility being built at a cost of Dh220 million ($59.90 million) is set to open later this year or early next year and the product range includes aluminium alloy rods, wires and bare overhead conductors.

An ambitious project announced several years ago was the Taweelah Aluminium Extrusion Company (Talex), a joint venture between Senaat and Gulf Extrusions Company that will have production capacity of 50,000 tonnes annually.

Kizad will be key to the UAE’s downstream aluminium industry which analysts project will grow to over 650,000 tonnes by 2018, the growth coming from local infrastructure development projects and demand from international markets.

While aluminium has been making waves in the UAE, thanks to the region’s largest smelter conglomerate, Emirates Global Aluminium, which has its Emal production facilities in Al Taweelah, Abu Dhabi, the steel sector is catching up and has made dramatic strides with Abu Dhabi’s Emirates Steel company developing fast to become one of the region’s biggest producers of rebar, wire rod and heavy sections.

Emirates Steel has plans to become the steel anchor at Kizad by setting up a steel complex there.

One of the significant steel developments at Kizad of 2015 was the agreement to build a steel foundry for making brake disks and brake calipers for the global authomotive industry. The plant is being built by Advance Manufacturing Soutions, a subsidiary of FourWinds Group.

The Borouge plant, one of the largest in the region

The Borouge plant, one of the largest in the region

“For us Kizad represents the  perfect location that offers superior quality services and infrastructure that would enable the foundry to be at its level best in performance, as well as to reach our global customers with ease via Khalifa Port,” said Vivek Rao, CEO of Four Winds Capital Management.

Khalifa Port itself is one of the stars of port infrastructure in the region with expansion phases set to raise its container volumes to over 15 million teu from the current 2.5 million and its general cargo volumes to 35 million tonnes against the current 12 million. More than 772,000 teu were handled in the first seven months of 2015, up from 549,000 teu in the same period in 2014. General and bulk cargo climbed 21 per cent to 8.71 million tonnes.

Abu Dhabi Terminals also set new productivity records, handling the vessel APL Boston with an average crane productivity of 39.81 gross moves per hour, resulting in berth productivity of 135.18 GMPH during a 19-hour, 54- minute port stay. Such productivity levels across all the ports have seen the network of Abu Dhabi Ports grow to more than 100 direct connections to global ports linked to over 36 shipping lines.

In 2015, all roll-on-roll-off (RoRo) operations were transferred to Khalifa Port from Zayed Port.

A project vastly more ambitious than the Four Winds one is a mill being set up at Kizad by a joint venture between Senaat (51 per cent) and Japanese firms JFE Steel Corporation and Marubeni-Itochu Steel.

The venture named Al Gharbia Pipe Company and announced this year will manufacture sour grade longitudinally submerged arc welded (LSAW) steel pipes mainly for the oil and gas industry. The potential is considerable. It could serve local demand and requirements from the Gulf’s huge oil and gas industry across several states.

“The exceptional infrastructure and transportation network offered by Kizad will make a significant difference to Al Gharbia’s business operations,” said Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.

Another manufacturing project launched in 2015 and which will produce with inputs from metals is Ingenum, a subsidiary of the Siddco Group. It will make intricate equipment in various metallurgies including storage tanks, pressure vessels and heat exchangers in Kizad.

A plant manufacturing refrigeration and cooling systems, also launched this year, is coming up in the same hub. Adearest’s subsidiary Polar Specialised Industries will manufacture refrigeration skids, steel pressure vessels, steel tanks and switch gears for refrigeration and cooling systems.

LOGISTICS

As manufacturing needs high-quality logistics help to maximise reach and revenues, the entry of logistics specialists in Kizad is not at all surprising. One such company to come aboard this year is Schmidt Logistics, whose expertise lies in the packaging, product handling and intermodal transportation of dry bulk products in addition to providing value-added services to include patent technologies exclusive to Schmidt Logistics.

Al Mazrouie International Cargo Company (Micco) that is establishing a new logistics business centre at Kizad will have temperature-controlled storage facilities, bulk storage through open yards, distribution services and a service centre for their trucking fleet.

“Khalifa Port and Kizad play an important role in our business,” said Captain Simreen, managing director of Micco.

BOROUGE

An overview of Abu Dhabi’s diversified industries would be incomplete without a mention of Borouge, the plastics producer. The Borouge 3 expansion project was completed this year with the start of all polyolefins units, increasing the company’s annual production capacity to 4.5 million tonnes of polyolefins at its petrochemicals plant in Ruwais. The expansion includes two additional Borstar polyethylene and polypropylene units, as well as a low density polyethylene (LDPE) unit to supply advanced plastics solutions to the flexible packaging and wire and cable markets.




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