The Gulf’s aluminium industry is abuzz with the news of new multi-billion dollar smelters being planned in the region. Already, plans are in an advanced stage for huge projects in Oman and Qatar.

Concerns have been expressed in many quarters whether the existing projects such as Alba and Dubal will have an adverse impact from the proposed ones.
“There is a little bit of hysteria about such projects,’’ says Bruce Hall, the chief executive of Alba. “The reality is that every smelter, wherever they are being built, is a threat because they are going to be competitive.
“But is it a bigger threat because the new smelter is in the GCC as opposed to Iceland or China? It is not. The competition is not greater because it’s here than further away,’’ says Hall.
“Smelters are always built where there is cheap power available. The metal is sold worldwide. The Qataris are going to supply to the same market as we do, just like the Icelandic smelter,’’ he says.
However, Hall actually sees a silver lining in the development. “I see the whole picture from a totally different perspective. The sustainability of Alba will be enhanced by the growth of the aluminium industry in the Gulf, particularly if they use the same technology. We can start building a club, improve on the technology and learn from each other’s experiences.”
The question is, as Hall puts it: “Are we prepared to share what we have learnt? Are we prepared to work together in synergies to take advantage of our buying power?
“There will be a lot more synergy to be gained and the threat is lower by having the smelter in the Gulf,” he says.