Alcoa and Ma′aden Continue Developing Capabilities of Ras al Khair Complex in Saudi Arabia: Underline Commitment to Develop Downstream Sectors
Alcoa (NYSE:AA) and Ma′aden today announced commencement of work to
extend the product mix of their aluminum complex currently under
construction at Ras Al Khair, Saudi Arabia.
This latest milestone will enable the two companies to include
capability for producing about 100,000 metric tons of a wide range of
products suitable for further downstream manufacturing in the complex′s
product lines. They include automotive heat-treated and non-heat-treated
sheet, building and construction sheet and foil stock sheet. Depending
on demand, the line will start production at the end of 2014. A contract
for Engineering, Procurement, and Construction Management has been
awarded to Fluor. An award has also been released to SMS Siemag for
supply of the mill equipment and heat treatment line equipment. The
contracts were signed today at a ceremony in Jubail attended by His
Excellency the Minister of Petroleum and Mineral Resources Ali Al Naimi
and the Chairman of the Royal Commission for Jubail and Yanbu, His
Highness Prince Saud Althunayan.
'This step will place Saudi Arabia among the world′s foremost aluminum
producers by combining the highest standards of quality with the
exceptional cost competitiveness of this world-class project,? said
Khalid Mudaifer, Ma′aden′s President and CEO. 'These new capabilities
will help establish downstream industries in Saudi Arabia using aluminum
that has been mined, refined, smelted and rolled in the Kingdom. It is
also fully compatible with the national strategy of developing national
resources to create sustainable wealth and employment for Saudis, as
well as enabling the replacement of a wide range of imports with
cost?effective, high-quality domestic products, and encouraging the
expansion of the national industrial base. Many future generations of
our citizens will be able to trace their long and successful career
paths in business and industry to the decisions we are making here
today.?
In making the announcement, Engr. Abdullah Busfar, Vice President of
Ma′aden′s Aluminium Strategic Business Unit, said the additional
products reflect the commitment of the two companies to the realization
of the first fully integrated aluminum industry in the Middle East.
'The government of the Kingdom of Saudi Arabia has set the vision and
established the infrastructure to enable the development of the world′s
largest, lowest cost, fully integrated aluminum industrial complex. The
Ma′aden Alcoa joint venture is systematically establishing both the
foundation for this industry and the capability to support local
downstream sectors as they develop. Potentially, there are thousands of
jobs and career opportunities awaiting in those downstream sectors, and
we have the ability within this complex to quickly respond with advanced
expertise, proven best practices and high-quality products to support
them as they emerge,? Busfar said.
Ken Wisnoski, Alcoa Vice President and President of Alcoa′s Primary
Products Growth group, added that the additional products further the
joint venture′s lead in the establishment of a world-class aluminum
manufacturing facility in the Kingdom.
'Throughout this complex, we are bringing in the best technologies in
their class and developing the local skills and operational routines to
extract the most efficient, high-quality production from them. This was
already the first and only facility in the Middle East capable of
producing food-grade can sheet. Extending its capabilities significantly
increases that advantage,? Wisnoski said.
The complex′s smelter and rolling mill are scheduled to begin production
in 2013. The mine and refinery will follow in 2014.
About the Ma′aden Alcoa Aluminium Joint Venture
In its initial phases, the joint venture will develop a fully integrated
industrial complex, which will become the world's preeminent and
lowest-cost supplier of primary aluminum, alumina and aluminum products,
with access to the growing markets of the Middle East and beyond. The
complex comprises:
A bauxite mine with an initial capacity of 4,000,000 metric tons per
year
An alumina refinery with an initial capacity of 1,800,000 metric tons
per year
An aluminum smelter with an initial capacity of 740,000 metric tons
per year
A rolling mill, with initial capacity of 380,000 metric tons per year.
The mill will be the first in the Middle East and will be one of the
most technically advanced mills in the world.
First commercial production from smelter and mill is scheduled for 2013,
followed by first commercial production of alumina from the mine and
refinery complex, scheduled for 2014. Alcoa will supply alumina to the
smelter in the interim period.
About Alcoa
Alcoa is the world′s leading producer of primary aluminum, fabricated
aluminum and alumina. In addition to inventing the modern-day aluminum
industry, Alcoa innovation has been behind major milestones in the
aerospace, automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa ? wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa′s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for ten consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 31
countries across the world. More information can be found at www.alcoa.com.
About Ma′aden
Ma'aden was established as a Saudi Arabian joint stock company in March
1997 to facilitate the development of Saudi Arabia′s non-petroleum
mineral resources and to diversify the Kingdom′s economy away from the
petroleum and petrochemical sectors. Ma′aden is engaged in the
development, advancement and improvement of all aspects of the mineral
industry, mineral products and by-products and related industries in
Saudi Arabia. In July 2008 Ma′aden offered 50% of the company′s shares
for subscription in a successful SR 9.25 billion IPO. Ma′aden has
progressed towards realizing its vision of building a world class
mineral enterprise and its mission of being a profitable, publicly
owned, international mining company, while maintaining the utmost
concern for human resources, health and safety, environmental and social
issues. The company is committed to the best international and local
standards in environmental regulations and values its role in Corporate
Social Responsibility.
Alcoa Inc.
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media
Contacts:
Libby Archell, 212-836-2719
OR
Ma′aden
Aqeel
Alonazi, +966 553063813
