Pioneering technology advancements and sustainability initiatives, EGA continues to be a global aluminium leader in 2024

Emirates Global Aluminium (EGA), the world’s leading ‘premium aluminium’ producer, is the first company in the Middle East to have joined the Aluminium Stewardship Initiative and the first one in the UAE to have sold its own industrial technology internationally. Among the many firsts, EGA is also the first company in the UAE to implement the digital tracking system, the first in the world to connect metal quality analysis to LME digitally, and the first to ship bauxite cargo using LNG-fuelled ship, achieved in 2024. So clearly, this Middle East-based company has continued to excel in what it does best – leading and inspiring the global metal industry while pioneering numerous areas of the aluminium sector.

Image Source: Emirates Global Aluminium

All things first, in 2024

• First in the world, EGA digitally linked its metals quality analysis system to the London Metal Exchange, enabling the automation of the process of submitting analysis certificates, which are required for metal shipments into and out of London Metal Exchange warehouses around the world. This facility will allow greater traceability, accessibility, and transparency to metal quality without needing physical documents, which can be lost or damaged with time during shipment.
• In August 2024, EGA subsidiary Guinea Alumina Corporation (GAC) shipped bauxite cargo to China using a Liquefied Natural Gas-fuelled vessel. EGA is the first company in the world to have shipped bauxite in an LNG-fuelled vessel that will reduce up to 28 per cent of greenhouse gas emissions compared to the vessels using traditional marine bunker fuel.
• In September 2024, EGA, the first in the United Arab Emirates, implemented a digital tracking system for greenhouse gas emissions to enhance the transparency in recording GHG emissions aligned with the UAE’s National MRV Transparency System, a step towards the decarbonisation drive. EGA deployed the technology after the Ministry of Climate Change & Environment mandated the companies to report greenhouse gas emissions data to track the fulfilment of their commitments towards the 2050 net-zero emissions goal.

Interestingly, the developments above highlight EGA’s steadfast commitment to sustainability and its goal of achieving net-zero carbon emissions. The company furthered its sustainability mission through technology advancements and collaborations, with production efficiency, safety, and quality as top priorities.

Focus technology

• In a bid to improve process efficiency at Jebel Ali and Al Taweelah sites, EGA developed and deployed a digital manufacturing platform at the beginning of the year that would unlock additional value through Industry 4.0 applications. This platform was built using the latest Microsoft Azure hybrid cloud generation as a strategic collaboration to progress EGA’s digital roadmap.
• Earlier than that, the company broke ground to develop the region’s first 100 per cent renewable energy-powered industrial data centres at Jebel Ali and Al Taweelah sites. The data centres will enable EGA to implement artificial intelligence and automation solutions at the heart of the company’s industrial operations.
• EGA also entered into a partnership with the UAE’s Artificial Intelligence, Digital Economy and Remote Work Applications office to promote the adoption of AI in the industrial sector, including aluminium. The two entities will research AI development, particularly for the use in developing new aluminium alloys.
• In the middle of the year, EGA advanced its exclusive smelting technology, DX+ Ultra, to the next generation with more futuristic feautures. The upgraded version is called EX, which had its design completion in July. A more advanced iteration of the DX+ Ultra, the EX-reduction cells are designed to boost smelter capabilities with increased amperage, increase production capacity by up to 22 per cent, and improve current efficiency. The technology comes in two variants: one prioritising productivity and the other aiming to minimise greenhouse gas emissions. In December, EGA broke ground to start constructing ten pilot reduction cells for the EX, expecting the first batch of production from the pilot reduction cells by the first half of 2025.

While production enhancement has also been a focal point of EGA throughout the year, the company has collaborated with many partners to strengthen the raw material supply chain to support output capacity development. For a seamless and enhanced supply of primary aluminium inputs, EGA aims to expand its alumina production capacity in Guinea. In June, EGA’s subsidiary Guinea Alumina Corporation (GAC) signed a term sheet with the Government of Guinea for the development of a refinery, which is expected to come up near Tinguilinta in Boké province, with an initial production capacity of one million tonnes of alumina per year. For the development of the refinery, EGA also inked a framework agreement with Chinalco for its support.

To advocate and improve local manufacturing, EGA partnered with two local companies, Santoo Sealing and Rolon Seals, to seek assistance in expanding the newly established facilities in the UAE in line with the ‘Make it in the Emirates’ initiative.

This year, EGA has also boosted its investments in the aluminium recycling sector to capitalise on the expanding market for recycled aluminium. This initiative perfectly aligns with EGA’s objectives to boost the use of recycled metal. To kick off this strategy, the company has acquired a majority stake in American aluminium recycling firm Spectro Alloys Corporation, which further solidifies its presence in the United States domestic metal industry. EGA now owns 80 per cent of Spectra Alloys, while the latter retains a 20 per cent ownership.

EGA also completed the acquisition of German aluminium recycling company Leichtmetall, specialised in producing hard alloys and larger-diameter billets containing significant proportions of secondary aluminium. With this acquisition, EGA becomes a speciality foundry in Europe that uses renewable energy to produce up to 30,000 tonnes per year of billets, with an 80 per cent secondary aluminium content.

Some key agreements to look into

• Emirates Global Aluminium renewed its agreement with the BMW Group for CelestiAL-R supply, used for manufacturing high-quality aluminium components for BMW vehicles. Under the renewed agreement, EGA will continue to supply 10,000 tonnes of CelestiAL-R each year to meet the goal of increasing the proportion of recycled aluminium.
• EGA signed a contract with Alba to supply technology and monitoring services as well as operational consultation for Reduction Line 6. The agreement also covers operational and process audits, technical training workshops, and hands-on operation support.
• A partnership was also signed with Masdar, one of the world’s largest clean energy companies, to accelerate aluminium decarbonisation and low-carbon aluminium growth opportunities.

Financial results

Heightened demand for premium aluminium across the world propelled EGA’s strong H1 financial output, enabling the company to yield adjusted Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) of AED 4.20 billion ($1.14 billion) versus AED 4.15 billion ($1.13 billion) a year ago. EGA’s aluminium segment adjusted EBITDA margin improved to 27.5 per cent, compared to 26.9 per cent in H1 2023, strengthening its leadership among global industry peers. However, the company’s net profit dipped a bit from AED 1.96 billion ($533 million) in H1 2023 to AED 1.84 billion ($500 million) in H1 2024.

Operational output

EGA recorded a positive operational output across all its business segments. As far as primary aluminium is concerned, it increased from 1.32 million tonnes in H1 2023 to 1.34 million tonnes in H1 2024 at its smelters in Al Taweelah and Jebel Ali. Alumina output expanded from 1.15 million tonnes to 1.22 million tonnes, supported by increased bauxite exports from its subsidiary GAC from 6.87 million tonnes to 7.19 million tonnes.

Summing up

Through strong financial and operational performances, technology developments, and strategic partnerships, EGA has demonstrated its resilience towards premium and low-carbon aluminium manufacturing throughout 2024. Efficient production and safe operation were a key focus, as shown by zero-heat-related illnesses achieved for the third consecutive summer. For the next many years, sustainability will remain the main concern for EGA, encouraging the company to focus more on recycling. In 2026, EGA’s first and largest recycling plant in the UAE, coming up next to the company’s Al Taweelah smelter, with an annual aluminium processing capacity of 170,000 tonnes of pre and post-consumer aluminium scrap into low-carbon, will start producing hot metal.