The UAE emirates of Abu Dhabi and Dubai said Monday they have merged their two aluminum smelters to form a $15 billion entity that would be the world’s fifth largest producer of the metal.
Emirates Aluminium (Emal) and Dubai Aluminium (Dubal) will be merged into a new entity named Emirates Global Aluminium, the WAM state news agency said.
The combined assets of the two firms are valued at $15bn, and it will become the world’s fifth largest when Emal completes its second phase of expansion in the first quarter of 2014, WAM said.
Emal is reportedly expanding its production capacity from 800,000 tons annually to 1.3 million tons, while Dubal’s capacity is around one million tons.
Oil-rich Gulf countries have a number of large smelters, including, Alba of Bahrain, and Sohar in Oman. Saudi Arabia opened last year a smelter in the energy-rich eastern region, with an annual capacity of 740,000 tons.