UAE Aims to Restore War-Hit Aluminum Output in First Quarter

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUAE Aims to Restore War-Hit Aluminum Output in First QuarterEmirates Global Aluminium aims to restore production early next year after an Iranian strike shut its main smelter in March, potentially helping a metal market that’s seen prices surge on supply shortages.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Emirates Global Aluminium aims to restore production early next year after an Iranian strike shut its main smelter in March, potentially helping a metal market that’s seen prices surge on supply shortages.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountEGA said it’s spending $400 million on repairs to lift production to pre-war levels in the first quarter next year, while working to accelerate that timeline. That will boost supply prospects in a region that accounted for about 10% of global output before the conflict.Even after output at the Middle East’s top aluminum producer recovers, shipments will depend on the reopening of the Strait of Hormuz, EGA said in a statement Wednesday. That key chokepoint at the entrance to the Persian Gulf has been largely shut since the US and Israel attacked Iran at the end of February.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe company was forced to slash output after the smelter at Al Taweelah in Abu Dhabi was struck by Iranian missiles and drones during the early stages of the war. The damage forced EGA to invoke force majeure clauses to suspend some deliveries from a plant that had the capacity to produce 1.5 million tons of aluminum a year.Still, the company has continued to export metal by relying on routes that avoid Hormuz. EGA previously said it would take about a year to repair the damage.EGA has started about 18% of the aluminum production pots at the smelter, up from 7% in early July. The company’s bill for repairs provides one of the first cost estimates for regional reconstruction. The US war against Iran has roiled global markets by cutting off trade flows of key energy, metals and chemicals supplies out of the Persian Gulf with traffic through Hormuz still at a fraction of previous levels. Gulf countries that have long relied on seaborne traffic for the bulk of their exports are now scrambling for alternative routes that avoid Hormuz.The United Arab Emirates plans to expand ports on its eastern coast, where a container and oil hub in the emirate of Fujairah already provides access to the Indian Ocean. Countries like Kuwait, Iraq and Qatar have been largely isolated from their main export markets, while Saudi Arabia has shifted traffic to the Red Sea, where flows are facing renewed threats from Yemen’s Iran-backed Houthis.The Islamic Republic struck infrastructure across the region, including aluminum production in Bahrain, in retaliation for US-Israeli attacks on the country. EGA said Wednesday that its adjusted net profit for the six months ended June rose 34% to $670 million from a year earlier, helped by higher aluminum prices.(Updates with details throughout)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.