EGA holds advanced talks to take stake in Oman’s Sohar Aluminium as conflict disrupts Gulf smelting capacity

OMAN – Emirates Global Aluminium has held advanced talks to acquire a stake in Oman’s 400,000-tonne Sohar Aluminium as a 60% shutdown of its UAE smelting capacity disrupts aluminium supply for beverage can and foil makers across the region.

The discussions, which predate the start of the Middle East conflict by several months, would see EGA potentially take over TAQA’s 40% stake in Sohar Aluminium, with the holding effectively transferred from one UAE government entity to another. 

Three sources said EGA was seeking to acquire Rio Tinto’s 20% stake, while two sources said EGA was trying to acquire both the TAQA and Rio stakes. 

The Omani government would not accept the Emiratis having majority control, and OQ’s stake would likely increase as part of the deal to prevent that outcome.

Why Aluminium Supply Matters for Packaging

Aluminium is the material of choice for beverage cans, aerosol cans, foil trays, tubes, and closures, valued for its light weight, corrosion resistance, and infinite recyclability. 

A 60% reduction in EGA’s UAE smelting capacity, approximately 1.5 million tonnes, represents a significant supply shock to global packaging markets. 

EGA exports 90% of its aluminium production; with its usual shipping route via the Strait of Hormuz closed, the company has been using the port of Sohar on the Gulf of Oman as an alternative export hub. 

A stake in Sohar Aluminium would secure off-take from a smelter that already sells approximately 60% of its output to local downstream customers.

Regional Smelting Capacity Under Pressure

Sohar Aluminium is currently the only aluminium smelter in Oman, but further south, work is underway on a 530,000-tonne green aluminium project in Duqm led by China’s CMOC. Oman’s biggest aluminium export markets in 2024 were Japan, Italy, and India. 

For Gulf packaging converters, any disruption to regional smelting capacity translates directly into higher can sheet prices and longer lead times. 

EGA’s move into Oman reflects a strategic hedge: maintaining access to primary aluminium even if UAE smelters remain offline.

A Deal with Deep Pockets

One source noted that EGA’s owners have “deep pockets,” adding that he did not think EGA would build another smelter at home because of potential environmental issues and the need to secure more electricity supply. 

EGA last month announced its intention to buy 80% of Italian aluminium recycling company Eco Green and later this year plans to start building the first primary aluminium smelter in the United States in almost 50 years.

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