The Dubai Aluminum company (Dubal) has announced that it is in negotiation with the Malaysian government and other private companies to acquire a stake in a $2.1 billion aluminum smelter to be set up in eastern Malaysia's Sarawak state.
“Our interest in the Malaysian smelter project bloomed into the current negotiations we are conducting on being an equity partner. We are convinced that this is a strong project and offers Dubal a strategic position in the fast growing ASEAN (Association of South East Asian Nations) markets,” Mohamed Ali Alabbar, Dubal vice chairman, said.
Alabbar added: “The final decision on Dubal's participation in the project will be taken by the company board after reviewing the findings of the feasibility study and studying the potential return on investment that it offers.”
The smelter project to be built near the port city of Bintulu, 180 kilometers from the Bakun hydroelectric dam project, will have an initial capacity of 250,000 tons per annum, which is likely to increase in stages. The smelter project will utilize power generated by the Bakun power project in a guaranteed off-take agreement, which assures uninterrupted power supply and competitively priced tariffs.
The other partners in the smelter project will be the Malaysian federal government, the state of Sarawak and other private Malaysian companies as well as overseas companies such as Dubal.
“The smelter project is expected to become operational in 2007 and will spearhead Dubal's strong entry into the ASEAN Free Trade Area (AFTA). This is particularly significant as tariffs on trade in the ASEAN are expected to fall to between zero and five per cent by 2003,” Alabbar said.
Dubal, the single largest non-oil industrial enterprise in the United Arab Emirates (UAE), is currently undertaking a major upgrade at its Dubai manufacturing facility which will increase the smelter's capacity by an additional 174,000 tons per annum (tpa) bringing total capacity to 710,000 tpa by 2006.
Commencing operations in 1979, Dubal is the single largest non-oil industrial enterprise in the UAE. Dubal is currently undertaking a major upgrade—the Kestrel project—at its Dubai manufacturing facility which will increase the smelter's capacity by an additional 174,000 tons per annum (tpa) bringing total capacity to 710,000 tpa by 2006.
Dubal incorporates a power generating capability exceeding 1,400 megawatts and seawater desalination plant capable of providing up to 25 million gallons of potable water daily. The Company employs over 2,700 staff. Emphasis is laced on the placement UAE nationals for positions within the company. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
