Page 20 - Altogether Magazine Issue 5 English
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tons for Alba Aluminium Bahrain, and 354 thousand It is certain that the aluminium industry and its future
metric tons for Sohar during the year 2013. The actual is closely linked to the evolution of aluminium’s
production for many of the smelters at the GCC have now uses and the diversity of these uses. For this reason
approached the upper limit of their available productive the technological and technical development of the
capacities, with the productive capacities in KSA having aluminium industry has become a vital factor to ensure
reached 740 thousand metric tons, which this reflects continuous demand. The aluminium industry in the Gulf
the size of existing investments as well as a great ability depends on the technology and telecommunications
for its products to compete in the global markets and sector to raise the level of demand for aluminium in the
open new markets that can accommodate the evolution long term as this will increase the prevailing price level.
of current productive capacities as well as those that This is especially important when taking into account
are being planning in the coming years. the fact that the growth of the global consumption of
In order to maintain a balanced level of competition aluminium is always affected by the growth rates of the
in the development of the aluminium industry, in terms emerging economies and the increasing reliance on the
of the evolution of its products and their uses at the aluminium in the electricity transmission sector as well
global level, it is necessary for the Gulf countries to as in electromechanical industries, where aluminium
set aside part of their production for foreign markets replaces expensive and high cost copper, in addition
in order to maintain a market share in preparation for to the higher usage of aluminium in the automotive
the period that will follow the completion of the local structure industry, and finally the growth of global
projects. This is needed in order to maintain a high level demand aluminium due to its usage in heavy industries.
of competitiveness in these markets and preserve their It is noticeable that the Gulf aluminium industry
global market shares to ensure continued marketing sector understands the importance of bringing
of all levels of production. new applications and products to ensure continuity.
Taking into account the fact that the capital intensity Gulf investments in the coming period are clearly
of the aluminium industry cannot afford or bear any focused on encouraging the automotive industry in the
unexpected drop in domestic and global demand region as well as on projects that benefit from the supply
for more than expected as well as their inability to of aluminium. The Gulf aluminium industry is currently
withstand any unexpected increases on production working within a system that offers great possibilities
costs, it is therefore likely for the aluminium industry and potential to increase the production capacity
to seek further mergers and acquisitions in the coming of primary aluminium, which means there are more
years on the global level, to give it greater ability to face investment opportunities capable of supporting the
any volatility in the market and higher efficiency for the industry and achieving the short, medium and long-term
disposal of high-cost production capacities. goals for existing and potential producers, investors
and governments.
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metric tons for Sohar during the year 2013. The actual is closely linked to the evolution of aluminium’s
production for many of the smelters at the GCC have now uses and the diversity of these uses. For this reason
approached the upper limit of their available productive the technological and technical development of the
capacities, with the productive capacities in KSA having aluminium industry has become a vital factor to ensure
reached 740 thousand metric tons, which this reflects continuous demand. The aluminium industry in the Gulf
the size of existing investments as well as a great ability depends on the technology and telecommunications
for its products to compete in the global markets and sector to raise the level of demand for aluminium in the
open new markets that can accommodate the evolution long term as this will increase the prevailing price level.
of current productive capacities as well as those that This is especially important when taking into account
are being planning in the coming years. the fact that the growth of the global consumption of
In order to maintain a balanced level of competition aluminium is always affected by the growth rates of the
in the development of the aluminium industry, in terms emerging economies and the increasing reliance on the
of the evolution of its products and their uses at the aluminium in the electricity transmission sector as well
global level, it is necessary for the Gulf countries to as in electromechanical industries, where aluminium
set aside part of their production for foreign markets replaces expensive and high cost copper, in addition
in order to maintain a market share in preparation for to the higher usage of aluminium in the automotive
the period that will follow the completion of the local structure industry, and finally the growth of global
projects. This is needed in order to maintain a high level demand aluminium due to its usage in heavy industries.
of competitiveness in these markets and preserve their It is noticeable that the Gulf aluminium industry
global market shares to ensure continued marketing sector understands the importance of bringing
of all levels of production. new applications and products to ensure continuity.
Taking into account the fact that the capital intensity Gulf investments in the coming period are clearly
of the aluminium industry cannot afford or bear any focused on encouraging the automotive industry in the
unexpected drop in domestic and global demand region as well as on projects that benefit from the supply
for more than expected as well as their inability to of aluminium. The Gulf aluminium industry is currently
withstand any unexpected increases on production working within a system that offers great possibilities
costs, it is therefore likely for the aluminium industry and potential to increase the production capacity
to seek further mergers and acquisitions in the coming of primary aluminium, which means there are more
years on the global level, to give it greater ability to face investment opportunities capable of supporting the
any volatility in the market and higher efficiency for the industry and achieving the short, medium and long-term
disposal of high-cost production capacities. goals for existing and potential producers, investors
and governments.
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