Dubai Aluminium Company Limited (Dubal) announced Saturday a new expansion of production capacity to 761,000 tonnes per annum (tpa) in a bid to consolidate its position as one of the world's lowest cost producers.
"This expansion will continue to elevate Dubal's position as one of the world's largest single site smelters and a major player in the aluminium industry," said Dubal vice chairman Ahmed al-Tayer.
"The expansion will continue to consolidate Dubal's position as one of the lowest cost producers of primary aluminium in the world," a company statement added.
Canadian engineering and construction giant SNC Lavalin has been engaged for the Engineering Procurement and Construction Management Services (EPCM) for the project, the statement said, without giving further details.
The Dubai government-owned smelter reported in January record production of 560,000 tonnes and sales of 616,000 tonnes for 2003. Output climbed five percent and sales seven percent over 2002.
The Middle East's largest aluminium producer had previously announced that it was working to boost total capacity to 710,000 tonnes per annum by 2006, but the latest statement gave no timeframe for the 761,000 figure.
"Economy of scale combined with tight control of costs is a key for success or even survival in today's aluminium smelting business," managing director Mohammad al-Ghurair said Saturday.
Dubal, the single largest non-oil industrial enterprise in the United Arab Emirates federation contributing 6.5 percent of Dubai's gross domestic product, employs more than 2,700 skilled people, and says it is among the 20 lowest cost aluminium producers in the world.