Abu Dhabi Basic Industries Corporation (Adbic) and Bahrain-based Midal Cables will set up a $100 million aluminium rod plant in Taweelah, Abu Dhabi.

Adbic, a leading industrial development company in Abu Dhabi, and Midal Cables, one of the world’s largest manufacturers of aluminium rod and conductors, have signed a memorandum of understanding (MoU) in this respect.

The MoU was signed at Adbic by Jamal Al Dhaheri, senior vice president metals, Adbic, and Hamid Al Zayani, managing director of Midal Cables.

Using ‘state-of-the-art’ equipment imported from Europe and the US, the plant will manufacture 150,000 tons per annum (tpa) of aluminium rods that will be converted locally into other value added products or supplied as feedstock to other downstream industries, with the balance to be exported, said a statement.

Molten aluminium metal for the project will be sourced from the new 700,000 tpa Emirates Aluminium (Emal) smelter currently under construction at Taweelah, it said.

The plant will be ready to receive the first batch of molten metal from the Emal smelter and commence commercial production in 2010.

"We are pleased about this partnership as it fits Adbic's drive to contribute to Abu Dhabi's industrial diversification through attracting metal conversion industries and leveraging Emal's planned aluminium upstream capacity in Taweelah," said Al Dhaheri.

Adbic is an industrial development and investment company created to facilitate the expansion of sustainable industrial activity in Abu Dhabi through the development of industrial clusters, the first such model in the UAE.

Midal Cables, which has over 30 years’ experience in this field, will provide the technology and expertise for the project, as well as investment capital. – TradeArabia News Service