The newly formed company, Emirates Global Aluminium, will have an aggregate value of more than USD 15 billion and will be the fifth-largest global aluminum company by production, once EMAL Phase II is complete in H1 2014.
In a move that will form a new industrial giant in the UAE, Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai (ICD) today announced the creation of Emirates Global Aluminum – a jointly-held, equal-ownership company that will integrate the businesses of Dubai Aluminum (DUBAL) and Emirates Aluminum (EMAL) — with plans for significant local growth and international expansion.
The Chairmen of the two shareholding companies, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and His Highness General Sheikh Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, witnessed the signing of the agreement today.
The accord builds on a successful partnership that started with the formation of EMAL in 2006, a joint venture of Mubadala and DUBAL. Emirates Global Aluminum will have an aggregate enterprise value of more than USD 15 billion and will be the fifth-largest global aluminum company by production, once EMAL Phase II is complete in H1 2014.
Building on the heritage of EMAL and DUBAL, the new company will look to expand along the value chain, from aluminum smelting to alumina refining and bauxite mining overseas. Given its scale, Emirates Global Aluminum will also continue to attract downstream manufacturing and ancillary businesses related to aluminum smelting and alumina refining as it grows, thereby indirectly creating additional jobs.
Emirates Global Aluminum will be managed by a board of directors that will be chaired by Khaldoon Khalifa Al Mubarak, current Chairman of EMAL, while Saeed Mohammed Ahmed Al Tayer, Vice-Chairman of DUBAL, will become its vice-chair. The board will also include Dr. Sultan Al Jaber, Abdulla Kalban, Khaled Al Qubaisi, Ahmed Yahia Al Idrissi, Abdul Wahed Mohammad Al Fahim and Khalid Al Bakhit.
The new company will be led by two well-established leaders in the UAE, both veterans in the aluminum industry. Abdulla Kalban, President and CEO of DUBAL with 28 years of experience, will be Managing Director and CEO, and Saeed Al Mazrooei, President and CEO of EMAL and leader of its rise in the industry, will become CEO of UAE Operations.
Al Mubarak; “The creation of a new global industrial champion anchored in the UAE is an important step towards realizing our vision for a diversified and sustainable economy. It is especially inspiring that UAE technology contributed to the success of this business and that it will continue to be led by UAE Nationals as it grows locally and globally. Emirates Global Aluminum will build on strong foundations of leadership, to become a major industrial champion and engine of economic development for our people.” — Al Mubarak, CEO of Mubadala
Mohammed I. Al Shaibani; “Today’s announcement builds on what these two outstanding organisations have created and reflects the UAE’s long-term industrial strategy. Emirates Global Aluminum will accelerate employment with 2,000 direct jobs being created by 2020, adding to more than 6,200 direct jobs already in existence. We also conservatively estimate that a further 6,000 indirect jobs will be generated, delivering total employment of over 33,000 people by the UAE aluminum sector through the end of this decade.” — Mohammed I. Al Shaibani, CEO of ICD
Pending required approvals, the formal commencement of joint operations is expected to be completed within the first half of 2014, at which stage, further announcements will be made.