Emirates Global Aluminium (EGA) is a joint venture between Mubadala Investment Company and Investment Corporation of Dubai that produces high-grade aluminium. The company, formed in 2013, is headquartered in Dubai and operates across the UAE and Europe.
In a recent statement, Mubadala stated that the company’s Initial Public Offering (IPO) may be in the cards this year. This article will provide an introduction to EGA and provide details of the Mubadala statement.
What is Emirates Global Aluminium?
Emirates Global Aluminium (EGA) is the world’s largest producer of premium aluminium products. It is created from the combination of two of the United Arab Emirates (UAE)’s leading aluminium producers – Dubai Aluminum (DUBAL) and Emirates Aluminium (EMAL). The company operates eight production units in three countries, including smelters, refineries, bauxite mines and casthouses.
Together, EGA has transformed aluminium production by having an integrated value chain spanning seven stages: mining bauxite to smelting, refining and casting. Each stage was completed with customised solutions established on advanced technology, innovation and environmental sustainability principles. As a result, EGA strive to achieve high levels of efficiency while driving a new level of performance in the global aluminium sector.
EGA products make their presence across the consumer markets like automotive, construction and packaging products including motorcycle helmets – a major success story for EGA. With operations in multiple locations worldwide, EGA allows customers to benefit from international standards and quality assurance protocols that ensure better stability for production processes around-the-clock.
History of Emirates Global Aluminium
Emirates Global Aluminium (EGA) is the leading aluminium producer in the Middle East region. Its history dates back to 1975 when Dubai Aluminium Company Ltd was established as an initiative of the Government of Dubai.
In 2014, Dubai Aluminium and Emirates Aluminium (EMAL) merged to create EGA, the largest industrial company in the United Arab Emirates outside of the oil and gas sector. The government holds a majority stake in EGA and Ultimate Beneficial Owner status by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, Ruler of Dubai.
EGA’s operations span from metal production to value added engineering services for clients from aerospace, automotive and general engineering sectors around the globe. With an annual production capacity of 4 million metric tons for both primary metal products and specialty metals EGA operates across four respective sites; Jebel Ali smelter complex; Dubal Site in Taweelah; Sharjah Casting plant; Sohar smelter complex; Reliance Power Project in Oman, where they run a 400KV GIS Substation transformer, gas turbines and have recently started producing electricity from steam turbine generator sets.
Ownership
Emirates Global Aluminium, or EGA, is the largest industrial company in the UAE, with two production sites in Al Taweelah and Jebel Ali. The company is majority-owned by Mubadala Investment Company and minority-owned by TAQA, an Abu Dhabi-based power and water company. As of 2021, Mubadala says an initial public offering (IPO) for signing the company can be expected to take place this year.
Let us take a closer look at the ownership of Emirates Global Aluminium.
Mubadala Says Emirates Global Aluminium IPO May Happen This Year
Mubadala Investment Company is an investment vehicle of the government of Abu Dhabi established to facilitate the diversification of Abu Dhabi’s interests abroad and drive new sector growth in the region. It has a broad mandate covering investment activity across multiple sectors and geographic regions. Established in 2017, the Abu Dhabi Government wholly owns Mubadala Investment Company. Major shareholders include Mubadala Development Company (the development arm of Abu Dhabi’s Investment Council); International Petroleum Investment Company; Sovereign Wealth Fund and TAQA (Abu Dhabi National Energy Company).
Emirates Global Aluminium (EGA) is one of its most prominent investments, formed through a merger between two leading local aluminium companies, Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL). The merger was completed in 2013 when EGA became fully owned by Mubadala. As a result, EGA is now one of the world’s largest aluminium companies with assets across UAE and Europe with an annual production capacity of more than 4 million tonnes annually.
Abu Dhabi Investment Authority
The Abu Dhabi Investment Authority (ADIA) is one of the world’s leading sovereign wealth fund managers, with more than USD 600 billion total assets.
ADIA was formed in 1976 to provide an additional source of capital for the United Arab Emirates, supplementing the revenues generated by the country’s rapidly expanding hydrocarbon industry. By creating a reserve and investing outside the UAE, ADIA helped to diversify the economy and create additional sources of revenue that could support long-term economic growth.
In 2013, ADIA took majority control of Emirates Global Aluminium (EGA), with Mubadala Investment Company and Investment Corporation of Dubai also sharing ownership. EGA is among the largest industrial companies in the region, with a network that spans 18 countries and 4 continents. With operations across all areas of aluminium production from raw material extraction to end product manufacturing, EGA strives for innovation across all verticals and has committed close to AED 15 billion to research and development initiatives since its inception in 2011.
Production
Emirates Global Aluminium (EGA) is one of the world’s largest and most efficient producers of premium aluminium products. With production facilities in UAE and Guinea, EGA’s facilities have a combined annual production capacity of 4.3 million tonnes per annum (Mtpa) of primary aluminium and 14 Mtpa of alumina.
This section will provide an in-depth look into EGA’s aluminium and alumina production process.
Emirates Global Aluminium’s production facilities
Emirates Global Aluminium (EGA) is one of the world’s largest aluminium producers. It has two production facilities in the United Arab Emirates: Dubai and Al Taweelah. EGA produces high-quality aluminium products which are used in everyday life.
EGA produces primary aluminium at the Dubai facility using potline technology and energy intensive electrolytic cells. It then further processes its primary metal into a wide range of extruded and rolled products such as flat sheets, profiles and tubes.
At Al Taweelah, EGA operates an integrated smelter including smelting and casting operations for the continuous production of primary aluminium products in liquid or cast forms. Moreover, it has equipped itself with state-of-the-art equipment like automatic billet casters, to produce light alloy solutions from recycled aluminium scrap.
EGAs integrated production facilities can produce up to 3 million tonnes of finished product annually. They comply with recognised International standards like ISO 9001:2015 for Quality Management System and ISO 14001:2015 for environmental management systems. Additionally, all our facilities have international accreditations for meeting emissions standards by global renowned agencies like Clean Air Asia Pacific (CARAP) and Bureau Veritas Certification France (BV).
Production capacity
Emirates Global Aluminium (EGA) is one of the world’s largest aluminium companies, with a production capacity of 2.4 million metric tonnes, an overall energy capacity of 27,000 MW, and an EGA-owned port from which to serve their customers.
Founded in 2013, EGA is a joint venture between Mubadala Investment Company and Investment Corporation of Dubai started to combine the growth potential of aluminium and provide sustainable materials for construction projects in the UAE. EGA operates in four countries – UAE, Bahrain, Denmark and South Africa – and exports products worldwide. The company has approximately 8,400 employees producing high-quality aluminium across 40 production facilities.
EGA produces primary aluminium – ingots which are then fabricated into semi-fabrications and components used in various applications– from cars to buildings. They also produce bauxite – a key component in producing primary aluminium – as well as alumina created when bauxite is dissolved into water.
IPO
Emirates Global Aluminium (EGA) is the largest industrial company in the United Arab Emirates and is majority-owned by Mubadala Investment Company. Recently, Mubadala expressed an interest in having an Initial Public Offering (IPO) for the company and believes it could happen this year.
Let’s take a look at the potential impacts of this decision.
Mubadala’s plans for an Emirates Global Aluminium IPO
An initial public offering (IPO), or stock market launch, is when a private company gives up part of ownership to the public by offering stocks for sale in the open market. Emirates Global Aluminium (EGA), owned by Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, plans to become the U.A.E. ‘s first publicly traded company as it prepares for its IPO in 2021 on the Abu Dhabi Securities Exchange.
The proposed IPO of Emirates Global Aluminium will offer improved financial transparency, better access to capital and professional ownership improvement from potential new investors. Once listed, EGA will become the only vertically integrated aluminium producer listed on exchanges across all major markets including London and Dubai, making it especially attractive for institutional and global investors seeking exposure to aluminium sector fundamentals.
Additionally, having a presence on the local exchange will enhance both corporate image and reputation and improve liquidity of company’s shares over time. As such, Mubadala’s plan for an Emirates Global Aluminium IPO is likely to bring long-term benefits for EGA and its stakeholders, including shareholders, customers and staff.
Potential impact of an Emirates Global Aluminium IPO
An initial public offering (IPO) for Emirates Global Aluminium (EGA), the largest industrial company in the UAE, would have a major impact on the global aluminium industry. An EGA IPO would signal a major shift in how EGA does business, moving from a government-controlled entity to a publicly listed company. Such an IPO could provide many benefits, including increased access to capital markets, better corporate governance and financial transparency. It could also increase efficiency and foreign direct investment into the UAE economy.
The potential impact of such an IPO is far-reaching, as it would change how EGA operates and how other private and state-owned industrial companies are structured in the UAE. Furthermore, the implications of this move extend beyond shareholders of EGA to those that make up its supply chain through increased commercial opportunities. With so much at stake, an EGA IPO has attracted considerable attention from investors eager to gain insight into their options for participating in this monumental event.
An Emirates Global Aluminium IPO may also bring about macroeconomic stability in Abu Dhabi, increasing foreign direct investment and raising international perceptions of stability within the country’s financial markets. Furthermore, with improved access to capital markets comes lower cost of funding for business operations due to reduced borrowing spreads and improved liquidity levels among market participants. Moreover, greater transparency within corporate governance processes should be expected following an IPO; as such an event increases compliance standards among firms across all industries in Abu Dhabi which can provide long-term benefits for local business structures that meet higher international compliance standards; benefiting businesses indirectly related to the aluminium industry over time as well as those operating within it now.
