Middle East's Largest Aluminum Company: Factory Severely Damaged by Iranian Missile and Drone Attacks
Excerpt from Shi Zhengcheng, Science and Technology Innovation Board Daily
EGA (Emirates Global Aluminium) announced that its Tawira Tawira production facility in Abu Dhabi suffered severe damage.
Author | Shi Zhengcheng
As the conflict between the US, Israel, and Iran continues, the focus of the capital market has shifted from disrupted shipping to whether the region's industrial output can survive until the end of the war.
Late Saturday night Beijing time, EGA, the Middle East's largest aluminum producer, issued a statement saying that earlier that day, its Tawira production facility in the Khalifa Economic Zone of Abu Dhabi was attacked by Iranian missiles and drones, suffering severe damage.
As background, on Friday local time, following attacks on two large Iranian steel mills and their associated power facilities, as well as a "yellowcake" factory, Iran listed six steel mills in Israel and related industrial facilities in five other countries in the region as new targets for retaliatory strikes, warning that "industrial enterprises and heavy industry workers in the region with ties to the US and Israel should immediately leave their workplaces to avoid endangering their lives."
Emirates Global Aluminium stated that several employees were injured in the attack, but none are in life-threatening condition. The assessment of the damage to the facilities is still underway.
The Abu Dhabi Media Office disclosed earlier on Saturday that three fires caused by ballistic missile debris near the Khalifa Economic Zone injured six people.
Emirates Global Aluminium is one of the largest aluminum producers in the Middle East and a significant supplier to the global market. The Middle East accounts for approximately 9% of the global aluminum market (8% excluding Iran).
According to the company's website, one ton of every 25 tons of aluminum produced globally comes from Emirates Global Aluminium. This equates to 4% of global capacity.
The attacked facilities include a smelter with a production capacity of 1.6 million tons of cast aluminum by 2025 and a refinery that supplies alumina (the main raw material for this metal) to the smelter.
The impact of the attack on production capacity is currently unclear. The company only stated that it had substantial metal inventories in its sea and overseas warehouses at the time of the Israeli and US-led war against Iran last month, and is currently utilizing these overseas inventories to meet customer demand.Besides Emirates Aluminium, another major Middle Eastern aluminum producer, Alba, also announced earlier this month that it was reducing production due to cargo being unable to pass through the Strait of Hormuz. Norwegian company Hydro's Qatalum aluminum smelter in Qatar has also reduced output.