The UAE’s largest industrial company and aluminum producer flexed its product mix in 2020, focusing on controllable costs and new project ramp-ups. To achieve improved performance in 2020 despite economic disruptions caused by the COVID-19 pandemic. EGA announced this in a recent press release.
EGA achieves significantly improved financial performance in 2020
Abdulnasser Bin Kalban, Chief Executive Officer, said, “EGA achieved significantly improved financial performance in 2020, the most challenging year for the global aluminum industry in decades. We achieved this through product flexibility, a relentless focus on controllable costs and cash generation, and strong ramp-up performance on our new upstream projects despite the additional challenges posed by COVID-19.
Outlook for aluminum market in 2021 very good, according to EGA CEO
“The recovery of the global aluminum market that started in the second half of 2020 has continued into 2021, based on the brightening global economic outlook and growing optimism about the introduction of COVID-19. We expect benchmark aluminum prices to remain around $2,000 for the full year 2021,” Abdulnasser Bin Kalban further elaborated.
Global competitiveness is EGA’s focus
“At EGA, we remain focused on further enhancing our company’s global competitiveness as the UAE’s national industrial champion,” the CEO of the aluminum producer continues.
1.92 million tons of alumina in first full year of production
EGA’s Al Taweelah alumina refinery produced 1.92 million tons of smelter-grade alumina in its first full year of production, close to its annual nameplate capacity of 2 million tons. Production at the Al Taweelah alumina refinery was at or above namesplate capacity in every month of the fourth quarter of 2020. The Al Taweelah alumina refinery supplies EGA’s own aluminum smelters.
66 new reduction cells at Al Taweelah aluminum smelter
As part of its efforts to eliminate production bottlenecks and invest in high-return growth projects, EGA is adding 66 reduction cells to the existing potlines at its Al Taweelah aluminum smelter to increase production capacity by 78,000 tons of pig iron per year.
World’s largest premium aluminum producer by volume
For the full year, however, EGA maintained its position as the world’s largest premium aluminum producer by volume, with value-added product sales of 1.8 million tons, or 72 percent of total sales. EGA sold value-added products to more than 400 customers in more than 50 countries in 2020.
Value-added products boost benchmark prices for EGA.
Value-added products command higher premiums over benchmark prices than standard aluminum, enabling EGA to maximize the value of its primary aluminum production.
EGA sold a total of 2.52 million metric tons of cast metal in 2020
EGA sold a total of 2.52 million metric tons of cast metal in 2020 compared to 2.60 million metric tons in 2019. The decrease is partly due to product mix, as no alloying materials are added in the P1020 casting process.
Local UAE sales to downstream aluminum sector down slightly
Local sales to the downstream aluminum sector, which has grown around EGA to become one of the UAE’s most important industries, amounted to 252 thousand tons compared to 294 thousand tons in 2019.
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