New aluminium downstream plant opens in Dubai will produce 3,000 parts per day, with €6 million returns expected this year
Al Ghurair Group has opened its new plant in Jebel Ali, which will supply sun roof parts to top of the range vehicles such as Range Rover, Nissan, Jaguar and Hyundai.
Royal Engineering Fabrication Company (Refco) which is fully owned by the Al Ghurair Group will produce about 3,000 parts per day and over 1.3 million parts per annum, with the growth forecast for next year at 1.9 million parts.
Expected returns are estimated at €3 million by the end of this year, targeted to grow up to €13 million in 2014, Majid Al Ghurair, CEO of Al Ghurair Group, said.
“It is just the beginning and we are looking to increase the production up to five times more.
The plant is creating value for the downstream aluminium sector, as well as positioning the company to play a major role in encouraging local industries to generate 100 per cent UAE-made products.”
Al Ghurair remarked that Gulf Extrusion, their main company, which is a leading UAE-based manufacturer of extruded aluminium products, will provide the raw material for Refco.
Adopting the latest technologies and the highest standards in sustainability and environment conservation, the new production line will enhance the economy by boosting exports, as 100 per cent of the output will be exported.
Matthew Webb, General Manager of Refco, said that today the plant is producing 100 per cent of sunroof parts of Jaguar XG and 40 per cent for Jaguar XF.
While the new plant is producing 90 per cent of the UK market share of sunroof parts for Range Rover and 60 per cent for Range Rover sport.
Refco’s production for Nissan Qashqai represent 50 per cent of the total UK production market, while it represents 40 per cent of production for Honda CRV and Honda Civic in the UK market, he added.
“With increased production capacity, we are now better positioned to capitalise on the region’s abundant supply of aluminium to ensure customer advantages in three key aspects — quality, cost and delivery,” he said.
It will not only improve Refco’s competitive advantage in the global market, but the UAE’s as well, Webb added.
New plant in the pipeline
The group will set up a new plant for aluminium extrusion in Abu Dhabi, with a production capacity of 25,000 tons by 2015, Majid Al Ghurair told Gulf News.
Despite being the industry’s leading player, he remarked that the aluminium downstream industry in the UAE should expand further.
The new facility will produce aluminium-extruded profiles ranging from architectural sections to components for air-conditioning grilles, furniture, marine applications, transportation, automotive and customised products.
The aluminium industry in the UAE is expected to represent five per cent of world production in 2015, while the GCC will produce 15 per cent overall, he added.
Gulf Extrusion’s market share represent 45 per cent of the UAE market worth Dh300 million, with 14 main industry players at present.
In the UAE, 80 per cent of the production go to the construction sector which is currently in a phase of expansion and diversification.
Gulf Extrusion manufactured 150 helidecks to be used at oil companies across the UAE, he added.
Source: Gulf News