A new company, Emiroll, is being set up to implement the project. It is a joint venture in which DI holds a 50 per cent stake, Pechiney 30 per cent and AGPC 20 per cent.
The new plant, to be located at Dubai Investments Park, is estimated to cost about $110 million-120 million. It will have an initial capacity of 33,000 tonnes a year (t/y) of aluminium foils, strips and coils, and will serve domestic and export markets. The plant will use Pechiney’s continuous casting and rolling technology. A consultant is due to be appointed soon.
Construction will start by the end of 2002 and the plant is scheduled to be commissioned by the end of 2004. The project is expected to generate revenues in excess of $80 million.
The announcement has brought down the curtain for two similar projects planned in Dubai. In August 1999, DI signed an agreement with Greece’s Elval to establish a $160 million rolling mill in the Jebel Ali business park. A new company, Emirates Aluminium Company (Emalco), was to be set up to operate the 60,000-t/y plant (MEED 13:8:99).
Following this, the local Al-GhurairGroup and a group of local investors, known as Alupromoters, announced in October 1999 the formation of a new company, Aluminium Gulf Company (AluGulf), to build a $180 million aluminium rolling mill at Jebel Ali.