UAE-based Emirates Global Aluminium (EGA) has opened its first office in China, in the city of Shanghai, it announced on Monday.
The Shanghai office of EGA’s wholly-owned Chinese subsidiary will source raw materials and other supplies in China, a statement said. EGA has procured over $500m of supplies from China over the past two years.
The office will also “deepen commercial ties” by developing sales opportunities for bauxite from EGA’s under-development bauxite mine in the Republic of Guinea.
Bauxite is the ore from which aluminium is derived. China is the world’s largest bauxite importer and a major aluminium producer. According to experts, global demand for bauxite, particularly in China, will grow significantly over the next decade.
Guinea has around seven billion tonnes of bauxite resources, over a quarter of the global total. EGA’s concession contains more than one billion tonnes of bauxite.
When complete, EGA’s mine in Guinea is expected to produce 12 million tonnes of bauxite per year. The development of the mine and associated export facilities is the largest greenfield investment in Guinea in four decades.
Abdulla Kalban, EGA’s managing director and CEO, said: “China is already a substantial source of raw materials and supplies for EGA, and we expect the importance of China for our business to grow in the coming years.”
EGA, formed in 2014 through the merger of Dubai Aluminium and Emirates Aluminium, is equally-owned by Abu Dhabi investment fund Mubadala Development Company and the Investment Corporation of Dubai.
It is the largest company jointly owned by the two emirates.
EGA has a production capacity of 2.4 million tonnes of aluminium per year and in the UAE, it is building the country’s first alumina refinery at Al Taweelah.
The company has some 300 customers in more than 60 countries and its aluminium is primarily used in the construction, automotive, packaging, aerospace and electronics industries.