Abu dhabi: Emirates Global Aluminium and Sunstone have announced plans to commence construction of a new anode manufacturing plant in the United Arab Emirates by 2026. The facility is projected to have an annual capacity of 300 thousand tonnes of anodes.
According to Emirates News Agency, the new plant aligns with the UAE's Operation 300bn industrial growth strategy and the Make it in the Emirates initiative. The production from this facility aims to replace most of EGA's current anode imports and position the UAE as one of the few global exporters of anodes.
A Joint Venture Agreement has been signed between EGA and Sunstone, with EGA holding a 45% share and Sunstone holding 55%. The joint venture expects to invest approximately $300 million based on their respective shareholdings. Anodes, essential for aluminium smelting, will be produced at the new plant, reducing EGA's dependency on imports.
Sunstone will construct the plant for the joint venture, with EGA acting as a financial investor and off-taker. Abdulnasser Bin Kalban, CEO of EGA, highlighted the project's potential to increase export opportunities, enhance local procurement, and contribute to economic growth. He emphasized the partnership with Sunstone as a strategic move to bolster anode supply security.
Lang Guanghui, Chairman of Sunstone, expressed the company's commitment to establishing its first overseas plant in partnership with EGA. He noted the collaboration as a response to the global manufacturing shift towards greener practices and aims to set new efficiency benchmarks.
EGA and Sunstone have engaged in several early-stage agreements, including a joint development agreement signed at the Make it in the Emirates Forum earlier this year.