World Economy

Aluminum Production in Persian Gulf to Reach 5m Tons

Aluminum Production in  Persian Gulf to Reach 5m TonsAluminum Production in  Persian Gulf to Reach 5m Tons

The volume of aluminum production in the Persian Gulf region is expected to increase to five million tons by 2015, accounting for 17.5 percent of the total global output, compared with 3.7 million tons in 2012 or 11 percent of the total world production.

Persian Gulf investments in the aluminum sector are expected to reach $55 billion by 2020, compared with $30 billion in 2011, thanks to expansion of smelters and new projects in the region, said a report released ahead of the Aluminum Middle East 2015, which will be held from April 14 to 16, at Dubai International Convention and Exhibition Center (DICEC), Dubai, UAE, Trade Arabia reported.

Globalization, market dynamics, environment and energy prices are redrawing the world aluminum industry map, with the Middle East in general and the Persian Gulf countries in particular emerging as the potential winners of the new business paradigm, said Daniyal Qureshi, group exhibition director at Reed Exhibitions Middle East, organizer of the event.

 Aluminum Industry Exhibition

These mega trends, along with the opportunities for the PGCC to benefit from them, will be highlighted at the Aluminum Middle East, the biggest specialized aluminum industry exhibition of its kind in the region that brings together manufacturers, producers, investors and services providers under one roof.

“The exhibition will put the aluminum market mega trends under the spotlight and define the best ways for the Middle East in general and PGCC, in particular, can benefit from these trends,” said Qureshi.

The exhibition will be held under the theme “Forging Connections… Building Possibilities”.

Aluminum industry experts say that the world will go through a fundamental transformation in all walks of life during the next 50 years, including where we live, what we consume, how we travel, and what we eat. These changes will fuel the demand for aluminum products worldwide and open the doors for those who are able to innovate and come up with what the world needs, he said.

 World Demand

The Aluminum Manufacturers and Producers Association expects the aluminum world demand to grow 6.5 percent annually which will see doubling of the production and consumption from 35 million tons in 2010 to more than 70 million tons by 2020.

Aluminum is among the industries that are greatly affected by globalization forces, which geographically redistributes production and consumption centers to benefit from cheap labor, energy and shipping costs, in addition to proximity to bauxite mines and less stringent environmental roles. There is also a shift towards lighter and stronger materials in many industries.

Parallel to these changes, recycling is another mega trend shaping the industry, not only because it is an integral part of the industry’s environmental policy, but also due to huge economic savings that recycling brings. The global recycling industry is estimated to be in excess of $200 billion in annual revenues, of which $75 billion is generated by the US.

According to Aluminum International Institute, producing one kilogram of aluminum from bauxite requires 45 KWH of electricity, compared with only 2.8 KWH using recycled aluminum, almost a 90 percent saving in energy costs.