Top Five Aluminium Producing Companies in GCC in 2020

The GCC countries have drawn all the attention of the global aluminium industry with record production of aluminium in 2020. The output surpassed the 6 million tonnes milestone for the first time ever, in a year that witnessed historic odds and challenges due to the unprecedented COVID-19 outbreak. According to the recent statistic of the Gulf Aluminium Council (GAC), five primary aluminium producers in the GCC collectively produced 6,115,408 tonnes of high-quality aluminium in 2020 for both the domestic and overseas markets, registering an increase of 353,554 tonnes or 6 per cent from 5,771,854 tonnes in 2019.

Let us now look into the five producers that helped the GCC countries achieve the new milestone:

Aluminium Bahrain’s Line 6 full capacity primarily drove the record production of aluminium in the GCC last year, producing 1,548,500 tonnes of aluminium alone. That was Alba's highest ever operational performance, beating its own target of 1,540,000 tonnes. This resilient production coupled with agility yielded a strong financial outcome as well, with profit soaring to BD9.7 million (US$25.9 million) – up by 81% year-on-year.

Alba’s top priorities for 2021 include – 1) Roll-out AL HASSALAH Savings’ Initiative with the Aim to Achieve US$100 million by 2022 & 2) Screen Potential Upstream Opportunities to Secure 1/3 Alumina requirements & Continuous Dialogue with Hangzhou Jinjiang Group Co. Ltd (HJJ).

Leading the pack of GCC producers, Emirates Global Aluminium produced 2,505,000 tonnes in 2020, which was, however, down by 2.87 per cent from 2,579,000 tonnes in 2019. In the GCC, EGA operates aluminium smelters in Jebel Ali and Al Taweelah, and an alumina refinery in Al Taweelah.

In the recent past, EGA completed a major periodic refurbishment of its Potline 3 at Al Taweelah, one of the longest and most productive potlines in the world. It also signed a contract with its first CelestiAL Aluminium customer - BMW. The former will supply 43,000 tonnes of Celestial Aluminium per year, in a bid to help BMW Group reduce CO2 emissions by 222,000 tonnes every year.

Saudi Arabia’s Ma’aden acquired the third position in the GCC with an aluminium output at 1,010,562 tonnes in 2020, up by 30.31 per cent from 775,500 tonnes in 2019. However, in the fourth quarter of the year, the company witnessed a dip in financial performance driven by a noticeable decline in the prices of basic products, including aluminium. Nonetheless, it is optimistic about the market heading towards recovery, maximizing profits and returns on investment. Currently, Ma'aden’s investments amount to nearly USD$2 billion in ongoing projects.

Ma’aden is among the fastest-growing mining companies in the world and the largest multi-commodity mining and metal company in the Middle East. It pioneered the mining industry in Saudi Arabia, building a world-class, unique and fully integrated mining value chain.

Qatar’s Qatalum produced 655,300 tonnes in 2020 compared to 661,900 tonnes in 2019, achieving the fourth position among the GCC aluminium producers. It operates an aluminium smelter in Mesaieed, Qatar, approximately 40 km south of Doha. Facilities include a carbon plant, a reduction plant, a casthouse, port and storage facilities, as well as a captive power plant.

Following Qatalum was Sohar Aluminium, which produced 396,046 tonnes in 2020, up by 1.43 per cent from 390,449 tonnes in the previous year. Sohar Aluminium was formed in September 2004 to undertake a landmark Greenfield aluminium smelter project in the Sultanate of Oman.

Both primary and downstream aluminium producers in the Gulf countries continued to maintain their leadership in the international market by contributing around 10 per cent of the world aluminium demand and exporting 60 per cent of their products to over 65 countries in the world.

The Gulf Aluminium Council is a coordinating body that represents, promotes, and protects the interests of the aluminium industry in the GCC. It provides a forum to develop strategies for common issues and concerns facing the aluminium industry in the region and to share best practices so as to improve the efficiency of the industry.