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FINANCIAL NEWS
Abu Dhabi to build USD4b aluminum plant in Malaysia
19 Jun 2011
(MENAFN) Mubadala Development, Abu Dhabi’s strategic investment company, and 1MalaysiaDevelopment plan to build a USD4 billion aluminum plant in Malaysia in a joint venture, The National reported.
The companies plan to build the smelter, which will produce up to 750,000 tons of aluminum a year, in Sarawak, on the island of Borneo. The Sarawak Corridor of Renewable Energy attracted Mubadala due to its low energy costs and strong logistics, Mubadala CEO Waleed al Muhairi said. The companies still must come to an agreement with Malaysia on regulations and electricity price.
The plant is part of Mubadala’s plan to increase its investment in aluminum, the CEO said. Demand for aluminum is expected to grow at 6 percent a year for the next decade as industries start to use it to replace heavier, more expensive steel, Aluminum Bahrain CEO Laurent Schmidt said.
Mubadala’s built a similar smelter in Abu Dhabi in a joint venture with Dubai Aluminum that recently reached full production. The smelter would become the largest smelter in the Gulf after a likely decision by the company to double the plant’s capacity
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