Emirates Global Aluminium (EGA) is poised to enhance its position as a leader in the aluminium industry with the development of the UAE’s largest aluminium recycling plant, expected to produce its first hot metal in 2026.
This ambitious project, unveiled in November 2023, underscores EGA's commitment to sustainability and innovation in the aluminium sector.
With a production capacity of 170,000 tonnes per annum, the plant will process both post-consumer and pre-consumer aluminium scrap, transforming used materials into high-quality, low-carbon aluminium billets marketed under the name RevivAL.
This initiative aligns with global trends towards recycling and sustainability, and reinforces EGA's role not only as a major producer in the UAE but also as a responsible corporate citizen.
THE VISION BEHIND THE RECYCLING PLANT
EGA’s recycling facility will be strategically located next to its existing smelter in Al Taweelah, Abu Dhabi. This location is not only logistically advantageous but also reflects the company’s strategy to integrate recycling into its operations. The decision to focus on recycling is timely, as global demand for aluminium continues to rise, driven by its applications in various industries, including automotive, construction, and packaging. By converting scrap materials into new products, EGA aims to reduce its carbon footprint and contribute to the circular economy, a model that promotes sustainability through resource efficiency.
The recycled aluminium produced at this facility will complement EGA’s existing product lines, including its pioneering solar-powered aluminium, known as CelestiAL. Launched in 2021, this product marked EGA as the first company to produce aluminium commercially using solar energy. In 2023, the company further expanded its low-carbon portfolio by combining solar and recycled aluminium to create CelestiAL-R, which boasts even lower carbon intensity. Such innovations position EGA at the forefront of the industry, catering to an increasingly environmentally conscious market.
FINANCIAL PERFORMANCE IN H1 2024
In conjunction with its sustainability efforts, EGA has reported solid financial results for the first half of 2024. The company achieved a net profit of AED 1.84 billion (approximately $500 million), a slight decrease from AED 1.96 billion in the same period in 2023. However, EGA’s adjusted Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) remained strong at AED 4.20 billion ($1.14 billion), demonstrating resilience amid fluctuating market conditions.
Abdulnasser bin Kalban, CEO of EGA, attributed this performance to the company’s focus on operational excellence and cost management. He emphasised the importance of long-term commercial relationships with global customers, which have been crucial in maintaining EGA’s competitive edge. With an adjusted EBITDA margin of 27.5 per cent, EGA continues to lead among its global peers, showcasing its robust business model.
During this period, EGA sold 1.30 million tonnes of cast metal to 411 customers across 57 countries. Notably, 82 per cent of these sales were value-added products, reflecting the company’s strategic focus on premium aluminium. The demand for aluminium billets surged by 18 per cent year-on-year, indicating a growing need for quality aluminium in various sectors.
STRATEGIC ACQUISITIONS AND FUTURE GROWTH
In May 2024, EGA completed its acquisition of Leichtmetall, a European specialty foundry, marking its first strategic acquisition since the merger of Dubai Aluminium and Emirates Aluminium in 2014. This move not only diversifies EGA's product offerings but also enhances its capabilities in the specialty aluminium market. The acquisition aligns with EGA’s broader strategy to meet the expanding global demand for low-carbon primary and recycled aluminium, positioning the company for sustained growth in the coming decades.
EGA is also committed to supporting the UAE’s industrial growth strategy, “Operation 300bn,” which aims to elevate the manufacturing sector's contribution to the national economy. By supplying high-quality aluminium to local customers, EGA plays a vital role in nurturing downstream industries within the UAE.
PROMOTING GENDER DIVERSITY AND INCLUSION
In addition to its operational and financial successes, EGA is making significant strides in promoting gender diversity within the workplace. Since Emirati Women’s Day 2023, the company has welcomed over 110 women to its workforce, including 67 UAE Nationals. This brings the total number of female employees to over 550, with aspirations to have 25 per cent of supervisory roles occupied by women by 2025.
EGA’s “Break the Mould” initiative aims to inspire young women to pursue careers in science, technology, engineering, and mathematics (STEM), thereby contributing to the UAE’s goal of increasing female participation in these fields. The country is already a leader in female STEM graduation rates, and EGA seeks to build on this foundation by fostering an inclusive workplace culture.
As part of its commitment to gender diversity, EGA has implemented various programs, including the Challenger Programme, which collaborates with leading industrial companies to address challenges related to gender diversity. EGA is also a signatory to the United Nations’ Women’s Empowerment Principles, underscoring its dedication to promoting women’s roles in industry and society.
CONCLUSION
EGA’s ambitious plans for the UAE’s largest aluminium recycling plant, combined with its strong financial performance and commitment to gender diversity, paint a promising picture for the future of the company. As it continues to innovate and adapt to global market demands, EGA remains at the forefront of the aluminium industry, contributing to sustainable development and the economic growth of the UAE. With its strategic initiatives and focus on operational excellence, EGA is well-positioned to meet the challenges and opportunities that lie ahead in the evolving landscape of aluminium production and recycling.
https://www.wam.ae/en/article/b4x2nix-ega-posts-net-profit-aed-184-billion-2024