Most of the products manufactured at the newly-opened Taweelah Aluminium Extrusion Company (Talex) will be exported overseas, according to a top executive of Senaat which has a 50 per cent stake in the company.
Talex was inaugurated on Tuesday by Shaikh Sultan Bin Tahnoun Al Nahyan, Member of the executive council at Khalifa Industrial Zone Abu Dhabi (Kizad).
The project is a joint venture between Abu Dhabi government-owned General Holding Corporation (Senaat) and privately-owned Gulf Extrusion of Al Ghurair Group.
The total investment in the new facility is $240 million and was financed through debt and equity. “Our business is export oriented and 70 per cent of our production will be exported. The focus at the moment is Australia, India, Europe, US and the Middle East, and the remaining output will be for domestic market,” said Jamal Salem Al Dhaheri, chief executive officer of Senaat, while speaking to Gulf News at the facility.
Asked whether he is still considering exporting to the US despite tariffs introduced by the US government on imported aluminium, he said there are a lot of initiatives by the UAE government to address the matter. “As of now we try to manage it as much as possible. That’s (US) one market but there are also other markets we are looking at,” he said, without elaborating further.
He also said that setting up of the new plant is in line with the Abu Dhabi’s economic vision 2030 to diversify the economy and boost growth. “Talex demonstrates Senaat’s commitment to developing industrial downstream projects in the Emirate in full alignment with the Abu Dhabi Economic Vision 2030. In addition, the plant complements Abu Dhabi’s vision to establish integrated industrial plants, to be the cornerstone of the emirate’s industrial sector development. “Combined with the buoyant growth predictions for the global aluminium extrusion market of an anticipated CAGR (compound annual growth rate) of more than 6 per cent by 2020, Talex has a great future ahead of it.”
Spread over almost 200,000 square metres, Talex has an estimated production capacity of 50,000 tonnes per annum of aluminium profiles and 45,000 tonnes of aluminium billets for regional and international markets.
Talex is the second company for Senaat in Kizad after it opened Dh220 million Ducab Aluminium Company in January this year. The company also has Al Gharbia Pipe Company, which is currently under commissioning.
“Opportunities are there. As an industrial company, we are always looking for opportunities. We have clear targets and expansion plans,” he said on future growth strategy.
Source: Gulf News