GCC, Power Plants, Technology and Arab Spring dominate first full day of Arabal 2012

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After a pre-conference day which included a workshop on the London Metal Exchange, the morning began with opening addresses to the plenary session by Mr. Mohammad Ali Al Naqi, Arabal Chairman; HE Dr. Mohammed Al Sada, Minister of Energy and Industry – presented on his behalf by Mr. Abdulrahman Ahmed Al Shaibi – who also spoke as Qatalum Chairman.

Mr. Svein Richard, Hydro Aluminium President and CEO, and Mr. Abdulrahman Ahmed Al Shaibi, Qatalum Chairman also gave addresses.

Mr. Al Shaibi, Chairman of Arabal 2012 Organising Host Qatalum, took the audience through the steps that the company has taken in Qatar and the achievements realized in the aluminium industry and industrial sector. However, he sounded a word of caution, "Despite the impacts of the global economic crisis, our growth must be tempered with a long term perspective. In doing so, this makes us more flexible and able to cope with change with the least possible consequences."

"We do not expect low prices to last; unlike many other metals, growth in aluminium demand is positive and we expect it to continue," he added. Mr. Al Shaibi expects prices to follow bullish forecasts in demand.

He expressed gratitude to the Qatari government. The industrial sector in Qatar is moving on the right track, he noted, "Supported by incentives and industrial benefits that aim to encourage industrial investment and to focus on industrial projects that are based on best available technology," something which can no longer be considered on a solely national basis. "It is truly an international industry, due to the interdependence between production and raw material hubs, the smelting and refining centres and the manufacturing industries," he added.

Dr. Al Sada, through Mr. Al Shaibi, praised Arabal as an ‘extraordinary opportunity for gauging the pulse of the industry and its developments across the globe’. Worldwide, he argued, aluminium industry is in a state of restructuring. Economic downslide in Europe coupled with escalating power tariffs, lack of local resources, taxation and tightening of ecological regulations have already resulted in the shutdown number of European aluminium production facilities.

"We are seeing a spate of evolution and consolidation within the industry. The focus of the aluminium sector is steadily shifting, often away from those who were considered the traditional leaders. Middle-Eastern manufacturers are now increasingly emerging as serious contenders in the global aluminium market," he added.

Mr. Svein Richard of Hydro Aluminium – whose joint venture with Qatar Petroleum spawned Qatalum – gave a comprehensive presentation, outlining Qatalum’s strategic position in the global supply chain, and spoke of ‘infinite aluminium’ through strong increase in demand and recycling innovations.

Mr Al Naqi, Chairman of the Arabal Organising Committee, was pleased to announce the number of participants in this conference at almost 500: a record number. He outlined how things have changed since the first conference in 1983.

"Today, as we celebrate the sixteenth version of Arabal 2012 in Doha, the region has seven smelters of primary aluminium with production capacity of up to 15% of global production," he said. adding that "This was along with the other supporting projects such as calcined coal and projects that depend on smelters’ products such as aluminium extrusion, cables and car wheels factories which supply global automotive companies." Saudi producer Ma’aden’s Vice President also announced that it will inaugurate its first aluminium smelter on 12th December this year, capping off a big year for GCC aluminium.

The day continued with an extremely senior panel discussion – with no fewer than five CEOs sitting on it – on the ‘Future Prospects of Aluminium Industry in the GCC’. Another panel followed, covering ‘The Future Prospects of Expanding Local Use and Creating Local Demand’.

Presentations on ‘Power Plant – Challenges, Difficulties & Experience’ and ‘Reshaping the World Aluminium Balance’ took attendees through the afternoon session, and the day finished with panel discussions on ‘Future Technologies’ and the "Impact of the Arab Spring on Infrastructure and Economic Growth’.

The evening was rounded off with ‘Qatari Night’ – a celebration of the Qatari way of life, culture and traditions, held at the St. Regis hotel. Delegates were treated to folk music, dance, delicacies and a visit to a Qatari village, before a traditional and sumptuous dinner.

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