Dubal Aluminium Company Limited

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• Dubal Aluminium Company Limited

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OUTLINE
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OWNERSHIP

• Founded in 1975 by H.H. Sheikh Rashid
• Semi-government industry
• Supported by private sector of local Gov.
• Owned by H.H. Sheikh Hamdan(chairman), and H.E.
  Mohammed Abbar (vice chairman)

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GOVERNMENT SUPPORT

• Advantages
• Reliance on citys income
• Market remains stable with no fluctuations

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STRATEGIES

• To enhance market and sales capabilities
• Focus on quality of exports
• Strengthening customer relations
• Reducing costs by increasing efficiency

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LOCATION

• Advantages
• Transportation costs reduced
• Nearby water supply for desalination
• Highway leading to local market
• Tax-free zone

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OFFICES

• The Main office Dubai, UAE
• Other offices
• UK
• USA
• Agents all over the world

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RAW MATERIALS-IMPORTS

• imports high quality raw material from around the
  globe
• Japan
• Switzerland
• Austria
• Australia

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FINAL PRODUCTS-EXPORTS
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PRODUCTION HISTORY

• Before 1997
• Produced in stocks
• Lower profits
• Commercially graded
• 99 pure

• After 1997
• Order driven
• Increase profits
• Added value
• 99.92 pure

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PRODUCTION HISTORY

• 1979135000 tpa
• 1997 387000 tpa
• 2000 536000 tpa
• DUBAL- largest in western world

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ORIGINAL PRODUCTS

• 92 products in three main lines
• Extrusion billet-construction
• High purity aluminium-electronics
• Foundry alloy-automotive wheels

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COST REDUCTIONS

• Reduction in transport cost
• Cheap labor
• Investment in plants and equipments
• PowerStation 39.7 efficient
• Greater energy output

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COMPETITION

• Cheap labor and energy lead to success in
  competing against
• New Zealand
• Brazil
• Argentina
• Russias SUAL Aluminium smelting company is
  producing Aluminium of a higher quality than
  DUBALs.
• DUBAL is pushing hard to measure up to Russias
  quality

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EXPANSIONS

• Falcon Expansion- 1997
• Condor Expansion- 1999

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RESULTS OF EXPANSIONS

• The expansions effected the following
• Sales production
• Hot metal capacity
• Energy efficiency
• Product lines
• Jobs
• Generating capacity
• Markets

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RESULTS OF EXPANSIONS

• Sales revenues
• 485 million- 1996
• 907 million- 2000
• Maintaining revenues by
• Sophisticated instruments
• Customer partnership
• New markets

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RESULTS OF EXPANSIONS

• Hot metal capacity
• 2 new pot lines and plant upgrades
• 261000 mtpa- 1996
• 536000 mtpa- 2000

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RESULTS OF EXPANSIONS

• Energy efficiency
• Upgrades in power plant increased
• Thermal efficiency to 39.7
• Site rated capacity to1450 megawatts
• Metal production increased by 137000 mtpa more.

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RESULTS OF EXPANSIONS

• New product lines
• T-ingot
• Small ingot

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RESULTS OF EXPANSIONS

• New jobs
• Workforce grew by 50 from 1996 to 2000
• 3 of 7 members are UAE nationals
• 4600 new jobs

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RESULTS OF EXPANSIONS

• Generating capacity
• 4 new gas turbines were added
• four 55kA rectifer transformers

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RESULTS OF EXPANSIONS

• Markets
• Successfully entered
• European market 100000 mtpa
• US market 55000 mtpa

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RESULTS OF EXPANSIONS

• KEY
• MARKETS-
• 1996

KEY MARKETS-2000
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WORLD SALES AND MARKET SHARE
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IMPACT ON UAES ECONOMY

• Income 6.5 of Dubais GDP (1997)
• More than 1.6 billion
• Direct gross outputs
• Capital expenditure
• Multiplier effects

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PROBLEMS FACED

• Main market, Asia, was hit by a serious economic
  downturn
• DUBAL supported them economically during this
  unexpected downturn.
• Customer services strengthened
• Searched for opportunity elsewhere to maintain
  demand in
• USA
• Europe
• DUBAL turned crisis into opportunity..- Mr.
  John Barsha (Business analyst)

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RELATIONSHIP WITH DEWA

• Dubal has its own power station and cant depend
  entirely on DEWA
• DUBAL and DEWA can borrow up to 200 mg from each
  other, in case of emergencies.

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AWARDS

• International Standard ISO- 9002
• Quality award 1996
• Environmental award1999 ISO- 14001