Emirates Global Aluminium, among the largest UAE non-oil industrial conglomerates, has declared force majeure for certain products after damage to its Al Taweelah plant sustained from an Iranian drone attack.
The company said it is doing everything it can to support its customers “during this difficult period”, EGA said in a statement to The National on Sunday.
“EGA has substantial metal stock on the water, and on the ground in the UAE and some overseas locations,” the company said.
“Many customers remain unaffected, but we have had to declare force majeure in some cases for certain products.”
Force majeure clauses allow suppliers to suspend contractual obligations without penalty when events beyond their control prevent delivery.
Earlier this month, EGA said that the damage to the Abu Dhabi production centres will take up to a year to repair.
The production unit at the Khalifa Economic Zones Abu Dhabi, hit on March 28 and had sustained “significant damage”. Aluminium Bahrain was also attacked on the same day by Iranian missiles and drones.
The site, including the smelter and cast house, power plant, alumina refinery and recycling plant, was fully evacuated and the centres entered emergency shutdown, the company said, in an April 3 statement.
To resume operations at the smelter, EGA must repair infrastructure damage and progressively restore each of the reduction cells, it said.
“Early indications are that a complete restoration of primary aluminium production could take up to 12 months,” EGA said at the time.
“Al Taweelah alumina refinery and Al Taweelah recycling plant may be able to restart some production earlier, depending on the final assessment of site damage,” the company added.
Both EGA and Bahrain’s Alba are significant suppliers to the global aluminium market. Supplies to customers were already halted due to the closure of the Strait of Hormuz by Iran.
Alba, which last month initiated a “controlled and safe shutdown” of about 19 per cent of its production capacity due to disruption in the strait, has also declared force majeure on its deliveries
EGA’s Al Taweelah smelter produced 1.6 million tonnes of cast metal last year. The company, which has more than 400 customers in at least 50 countries, sold 2.84 million tonnes of cast metal last year. Its aluminium is primarily used in the construction, car, packaging, aerospace and electronics industries.
