Aluminium manufacturing processes tend to be energy intensive with the result that locations able to offer low power costs such as Abu Dhabi are well placed to compete on a global level.
Consumption of aluminium on a global level has been increasing consistently, reaching 23.5 million tonnes in 2009. The Middle East market has been increasing significantly in response to demand from the manufacturing, aerospace, transport and construction sectors.
The Kizad Aluminium Cluster is anchored by Emal's smelter, which will be the largest single site smelter in the world. Downstream Kizad is targeting rolling mills, extrusions, castings, forgings and other downstream manufacturers in areas such as construction, transportation, packaging and engineered metal products. Additionally Kizad is consulting potential tenants about their requirements for service suppliers such as dross recyclers that require easy access to a smelter.
The Hot Metal Road will cut re-melting costs for mid-stream producers while the proximity of downstream producers and service suppliers will generate business and operational efficiencies which, supported by the low utility costs available at Kizad, will offer all aluminium companies the opportunity to be highly competitive in the market place.