EGA And Sunstone Announce Construction Of New Anode Manufacturing Plant In UAE For 2026

Emirates Global Aluminium (EGA) and Sunstone have announced plans to construct an anode manufacturing facility in the UAE, with construction set to begin in 2026. The plant will produce 300,000 tonnes of anodes annually. This initiative aligns with the UAE's Operation 300bn industrial strategy, aiming to replace most of EGA's current anode imports and position the UAE as a global exporter.

The joint venture agreement between EGA and Sunstone was signed recently. EGA will hold a 45% stake, while Sunstone will own 55%. The investment for this project is estimated at $300 million, divided according to their respective shares. Anodes are essential for aluminium smelting, and EGA currently produces about 1.35 million tonnes annually at its Jebel Ali and Al Taweelah plants.

Sunstone will oversee the construction of the new plant, acting on behalf of the joint venture. EGA will participate as a financial investor and off-taker. Abdulnasser Bin Kalban, CEO of EGA, expressed enthusiasm about the partnership with Sunstone. He highlighted that this project would boost export opportunities for the UAE and enhance local procurement.

Bin Kalban stated, "This project creates additional export opportunities for the UAE, further increases EGA’s local procurement and our contribution to UAE economic growth, and supports EGA’s long-term security of anode supply." He also noted that this collaboration exemplifies the Make it in the Emirates initiative by leveraging industrial demand to foster new manufacturing capabilities within the country.

Lang Guanghui, Chairman of Sunstone, shared his excitement about establishing their first overseas plant in partnership with EGA. He remarked on the significance of collaborating with a company like EGA that has a rich industry heritage. Guanghui emphasized their commitment to setting new efficiency benchmarks and laying a foundation for sustainable operations.

Guanghui said, "We are honoured to establish our first overseas foothold in the UAE and partner with a benchmark enterprise like EGA, which carries half a century of industry heritage and a mission to shape the future of aluminium." He added that this collaboration is a strategic response to global manufacturing's green transformation.

Future Prospects

EGA and Sunstone have been working together on this project through various early-stage agreements. The most recent was a joint development agreement signed at the Make it in the Emirates Forum in May this year. This collaboration aims to meet local needs while expanding exports from the UAE.

This venture not only strengthens EGA's supply chain but also contributes significantly to the UAE's economic growth by increasing local production capabilities. The establishment of this plant marks an important step towards achieving sustainability goals within global manufacturing practices.

With inputs from WAM