EGA restores 61% of smelter cells after Al Taweelah shutdown

UAE – Emirates Global Aluminium has restarted 766 of the 1,262 reduction cells at its Al Taweelah smelter, reaching 61% of the recommissioning target following the emergency shutdown on 28 March.

The disruption cut deeply into production and sales, with cast metal output falling to 1.376 million tonnes from 2.126 million tonnes a year earlier, and total aluminium sales dropping to 1.327 million tonnes from 2.083 million tonnes. 

Revenue declined to US$5.282 billion (AED 19.398 billion) from US$6.279 billion, a drop of nearly US$1 billion. 

Adjusted EBITDA fell to US$1.572 billion (AED 5.773 billion) from US$1.738 billion, though the margin improved to 29.8% from 27.7%, supported by higher realised prices, a richer value-added product mix and cost-control measures. 

The company recognised a US$53 million hit to reported EBITDA directly tied to the incident.

Capital Spend of US$400 Million Targets Full Recovery

EGA expects to complete the cell restart programme during the first quarter of 2027, with hot metal production rising as additional cells return to service. 

Restoring Al Taweelah’s production will require capital expenditure of approximately US$400 million (AED 1.5 billion), with most of the spending falling in 2026 and the remainder in 2027.

The alumina refinery restarted in early July at around 50% capacity, reaching roughly 70% by early September. 

The new Al Taweelah recycling plant resumed its ramp-up in May, with casting stations running at 50% capacity, and full production now expected in the second half of 2027 after commissioning delays involving certain equipment.

Export Corridors Bypass Strait of Hormuz

Following the temporary suspension of outbound shipments from the UAE in March, EGA established alternative export corridors connecting its operations with ports outside the Strait of Hormuz. 

A September agreement with Gulftainer will route up to 250,000 tonnes of aluminium through the UAE’s East Coast in the first year, rising to as much as 300,000 tonnes in the second. 

On the inbound side, the company renewed its long-term bauxite supply agreement with Compagnie des Bauxites de Guinée, securing up to 4.9 million tonnes annually until 2044, with the first 66,000-tonne shipment arriving in October.

Recycling Capacity Passes 400,000 Tonnes

EGA’s September acquisition of an 80% stake in Italian recycler Eco Green lifted total recycling capacity across the UAE, Europe and the US beyond 400,000 tonnes per year, with another 200,000 tonnes under development. 

Eco Green is investing approximately US$8 million to add 20,000 tonnes of annual capacity at its Nogara di Verona facility. Abdulnasser Bin Kalban, chief executive officer, said the results demonstrated the company’s operational expertise and the fundamental strength of its business.

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